In a move aimed at safeguarding investments in U.S. manufacturing, some of the world's leading solar equipment manufacturers have urged the Biden administration to impose tariffs on panels and cells from four Asian countries. The request comes amidst concerns over Chinese companies flooding the U.S. market with panels priced below production costs, resulting in a significant price collapse.
Seven companies, including Hanwha Qcells, Meyer Burger, REC Silicon, and U.S.-based First Solar Inc., Convalt Energy, Mission Solar, and Swift Solar, have filed petitions with the U.S. Department of Commerce and the International Trade Commission. They accuse Chinese companies with factories in Malaysia, Cambodia, Vietnam, and Thailand of undercutting prices, thereby threatening U.S.-made products.
If successful, the case could lead to higher prices for solar panels imported for rooftop installations or large-scale solar power plants. The Biden administration has expressed concerns about China's substantial investments in clean energy manufacturing and is evaluating potential trade remedies.
The petitioning companies are seeking anti-dumping and countervailing duties to offset foreign subsidies and ensure fair market pricing. While the trade case is expected to last about a year, preliminary rulings on duties could be issued within four to six months.
Despite the passage of the Inflation Reduction Act, which includes incentives for domestic clean energy production, the U.S. solar manufacturing industry remains vulnerable to increased competition from China. The waiver on import tariffs, set to expire in June, will not be extended, further complicating the situation.
However, not all stakeholders are in favor of the proposed tariffs. Solar project developers have opposed them, citing concerns about market uncertainty and potential disruptions to the domestic solar supply chain.
As the Biden administration navigates the delicate balance between revitalizing domestic manufacturing and promoting clean energy deployment, the outcome of this trade dispute will have significant implications for the U.S. solar industry.
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