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(Reuters) – U.S. trade authorities have officially implemented high tariff rates on nearly all solar cells imported from Southeast Asia, marking a significant milestone in an ongoing trade dispute. This case arose when American manufacturers claimed that Chinese firms had inundated the market with solar products sold at unfairly low prices.
The trade complaint was initiated last year by South Korea’s Hanwha Qcells, Arizona’s First Solar Inc, and several smaller manufacturers. Their aim was to safeguard substantial investments in the domestic solar manufacturing sector.
The coalition representing American solar manufacturers, known as the American Alliance for Solar Manufacturing Trade Committee, alleged that major Chinese solar panel producers operating factories in Malaysia, Cambodia, Thailand, and Vietnam were exporting panels below production costs and benefiting from unfair subsidies, which undermine the competitiveness of U.S. products.
The recently declared tariffs exhibit considerable variation based on the manufacturer and country of origin, yet they are notably higher than the preliminary rates suggested late last year.
Among the lowest tariffs imposed, Jinko Solar products from Malaysia will incur duties of 41.56%. In stark contrast, Trina Solar products manufactured in Thailand will face a staggering tariff of 375.19%.
Neither Jinko nor Trina responded to requests for comments immediately following the announcement.
Products sourced from Cambodia are set to encounter exorbitant duties exceeding 3,500%, as local producers chose not to cooperate with the U.S. investigation.
Tim Brightbill, legal counsel for the U.S. manufacturing coalition, expressed confidence in the results of the investigations, stating, “These are very strong results. We believe they will effectively tackle the unfair trade practices of the Chinese-owned firms in these four nations, which have been detrimental to the U.S. solar manufacturing industry for far too long.”
The imposition of tariffs on countries that supplied over $10 billion worth of solar products to the U.S. last year, representing a significant portion of domestic supplies, has dramatically altered the landscape of global solar trading. This year, imports from the four nations in question have drastically declined compared to last year, while imports from countries like Laos and Indonesia are on the rise.
Opponents of the tariff measures, such as the Solar Energy Industries Association (SEIA), warn that the tariffs could negatively impact U.S. solar manufacturers by elevating costs for the imported cells needed for panel assembly in American factories. These manufacturing facilities have been increasing since the introduction of a new clean energy manufacturing subsidy in 2022.
SEIA representatives were unavailable for immediate comment.
For the tariffs to take final effect, the International Trade Commission will need to vote in June to determine whether the domestic industry has been materially harmed by the influx of dumped and subsidized imports.
(Reporting by Nichola Groom. Editing by Sandra Maler and Leslie Adler)
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