Us Solar Imports From Parts Of Southeast Asia Face Tariffs Above 3,500%

[Jack Aylmer]

THE U.S. IS IMPOSING NEW TARIFFS ON SOLAR IMPORTS FROM FOUR SOUTHEAST ASIAN NATIONS – WITH RATES REACHING AS HIGH AS OVER 35-HUNDRED-PERCENT.

ON MONDAY, THE COMMERCE DEPARTMENT FINALIZED ANTIDUMPING AND COUNTERVAILING DUTIES ON SOLAR PANELS PRODUCED IN CAMBODIA, VIETNAM, MALAYSIA, AND THAILAND-

THIS IS THE CULMINATION OF A YEARLONG INVESTIGATION INTO ALLEGED UNFAIR TRADE PRACTICES INVOLVING THIS RENEWABLE ENERGY INFASTRUCTURE.

THE PROBE FOUND SOLAR MANUFACTURERS IN THESE COUNTRIES WERE BENEFITING FROM GOVERNMENT SUBSIDIES WHICH ALLOWED THEM TO SELL THEIR PRODUCTS IN THE U.S. AT PRICES BELOW THE COST OF PRODUCTION.

CAMBODIA IS SET TO FACE THE STEEPEST PENALTY OF THE GROUP AFTER DECLINING TO COOPERATE WITH THE INVESTIGATION

THIS CASE WAS INITIATED UNDER THE BIDEN ADMINISTRATION IN 2024 FOLLOWING A PETITION FROM THE AMERICAN ALLIANCE FOR SOLAR MANUFACTURING.

WHICH HAS VOICED ITS SUPPORT FOR THE TARIFFS.

THE ORGANIZATION’S LEGAL COUNSEL HAS CALLED THE MOVE A “DECISIVE VICTORY FOR AMERICAN MANUFACTURING.”

THEY ALLEGE THESE CHINESE-HEADQUARTERED SOLAR COMPANIES HAVE UNDERMINED U.S. COMPETITIVENESS BY SHIFTING PRODUCTION TO SOUTHEAST ASIA IN ORDER TO BYPASS EARLIER TRADE RESTRICTIONS.

HOWEVER, THESE DUTIES ALSO INTRODUCE NEW CHALLENGES FOR RENEWABLE ENERGY DEVELOPERS IN THE U.S.-

WHO HAVE RELIED HEAVILY ON CHEAPER IMPORTED SOLAR COMPONENTS. 

77% OF SOLAR MODULES IMPORTED INTO THE U.S. LAST YEAR CAME FROM THE FOUR COUNTRIES NOW FACING INCREASED TARIFFS-

WITH EXPERTS WARNING THIS COULD RESULT IN HIGHER PROJECT COSTS AND DELAYED SOLAR DEVELOPMENTS ACROSS THE COUNTRY.

BEFORE THE TARIFFS CAN TAKE FULL EFFECT THOUGH, THE U.S. INTERNATIONAL TRADE COMMISSION MUST DETERMINE IN JUNE WHETHER AMERICAN MANUFACTURERS WERE INDEED HARMED BY THE IMPORTS. 

MEANWHILE, IMPACTED FOREIGN SOLAR COMPANIES ARE REPORTEDLY EXPLORING STRATEGIES TO MITIGATE THE EFFECT OF RAISED U.S. TARIFF RATES-

INCLUDING EXPANDING OPERATIONS INTO COUNTRIES NOT CURRENTLY TARGETED BY THE NEW DUTIES, SUCH AS INDONESIA AND LAOS.

FOR STRAIGHT ARROW NEWS, I’M JACK AYLMER.