At the behest of US DOC the administration has imposed sky high tariffs. These tariffs specifically hit solar products brought into the U.S. from Cambodia, Malaysia, Thailand and Vietnam. Our year-long investigation uncovered this alarming trend. Specifically, these countries are dumping crystalline silicon photovoltaic (CSPV) cells and modules into the US market at predatory—and illegal—prices. It all started with a petition filed by the American Alliance for Solar Manufacturing Trade Committee that led to the tariffs. This Advisory Committee Brown represents a coalition of US solar manufacturers.
This decision is likely to be widely felt throughout the solar industry. Come June, the US International Trade Commission (ITC) will determine whether the US solar industry has been harmed by these imports. Additionally, the commission will determine if the industry is likely to be harmed in the future. Without any corroboration, the committee’s allegations have sparked a torrent of concern about China’s unfair trade practices. In particular, they accuse Chinese-owned firms in Southeast Asia of undercutting US prices through dumping and unjust subsidies.
Tariffs amounts are all over the place across impacted countries. Thailand is hit with steep countervailing duty (CVD) rates, up to 799.55%. At the same time, Vietnam will face the most severe duties, reaching a maximum of 542.64%. As it is, Malaysia’s tariffs are already extreme – 168.8%. Products imported from Cambodia will face mind-boggling duties of over 3,500% because that country did not join in the US’s investigation.
Eastman Machine, Heliene, and Oxford PV are all members of the TPC. These companies include Convalt Energy, First Solar, Hanwha Qcells, Meyer Burger, Mission Solar, REC Silicon, Swift Solar and Talon PV. The committee has accused major Chinese solar panel manufacturers with facilities in the target countries of selling panels below production costs, undermining US manufacturers.
Opponents of the tariffs claim that the stimulus measures will be outweighed by harm inflicted on the US solar industry by the tariffs themselves. The Solar Energy Industries Association (SEIA) contends that raising prices on imported cells could hinder domestic solar producers rather than help them.
“On behalf of the American Alliance for Solar Manufacturing Trade Committee and its members, we would like to commend the Commerce Department for its extremely hard work on these important investigations over the last year.” – Tim Brightbill
As this scenario plays out, ramifications from the establishment of these tariffs will surely be felt across the solar industry. While some manufacturers may find relief from perceived unfair competition, others fear that increased costs of imported materials could stifle growth and innovation in the sector. The ITC’s final word in June will be decisive. It will determine the direction of solar manufacturing in the U.S. for years to come.