Mark Widmar's candid remarks about President Trump's new tariffs sent First Solar's stock into a sudden downward spiral.

According to Fox Business, First Solar's stock dropped more than 7.5% following CEO Mark Widmar's discussion of how the Trump administration's tariffs have created "significant challenges" for the solar module manufacturer's operations.

The dramatic market response came after Widmar's earnings call, where he detailed the substantial economic hurdles facing First Solar's manufacturing facilities in India, Malaysia, and Vietnam due to the new tariff structure. The company's share price settled at $125.82, marking an 8.32% decline as investors processed the implications of these trade policies.

Trump tariffs reshape solar manufacturing landscape

The recently implemented tariff policy includes a baseline 10% levy on imported goods, with President Trump announcing additional "individualized reciprocal higher" tariffs for specific nations. This was followed by a 90-day pause period during which a universal 10% duty would apply to countries that hadn't retaliated against U.S. trade measures.

First Solar CEO Widmar explained the company's predicament during the earnings call:

While the subsequent 90-day pause to the effectiveness of these tariffs and the application of a 10% universal tariff partially mitigates the impact, the lower rate would still result in a meaningful adverse gross margin impact to sales into the United States, absent the duty being fully passed through to the module buyer.

The uncertainty surrounding the tariff rates beyond the 90-day pause period has complicated the company's ability to forecast its module shipments and financial performance for the latter half of 2025.

Strategic manufacturing shifts underway

First Solar is actively pursuing alternative strategies to navigate the challenging trade environment. The company plans to reduce its U.S. exports from India, focusing instead on serving that country's domestic market.

The solar manufacturer is also evaluating production optimization options for its facilities in Malaysia and Vietnam. Widmar acknowledged the possibility of reducing or completely halting production at these locations if the announced reciprocal tariffs take effect.

Despite these immediate challenges, First Solar maintains optimism about its long-term prospects, particularly given its status as the only major U.S.-headquartered photovoltaic manufacturer and its expanding domestic manufacturing presence across three states.

Financial outlook reflects market uncertainties

The impact of these trade policies has forced First Solar to revise its 2025 financial projections significantly downward. The company now expects net sales between $4.5 billion and $5.5 billion, a substantial reduction from its previous guidance of $5.3 billion to $5.8 billion.

The earnings per diluted share forecast has also been adjusted to a range of $12.50 to $17.50, down from the earlier projection of $17.00 to $20.00. These revisions incorporate various assumptions about tariffs, trade remedies, and benefits from the Inflation Reduction Act of 2022.

The company's first-quarter performance showed net sales of $844.6 million and a net income of $209.5 million, highlighting the underlying strength of its business model despite the emerging challenges.

Future considerations and market impact

First Solar faces unprecedented challenges as President Trump's tariff policies reshape the solar manufacturing landscape. The company's stock decline reflects investor concerns about its ability to maintain profitability while navigating complex international trade dynamics. The solar module manufacturer must balance its international manufacturing operations against new trade barriers while leveraging its position as a leading U.S.-based producer. The outcome of the 90-day tariff pause and potential future trade policies will significantly influence First Solar's strategic decisions and financial performance in the coming months.