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America Intends to Impose Duties on Asian Solar Panels

June 9, 2024

The United States intends to impose tariffs on solar panels and solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam; the US International Trade Commission indicates that American manufacturers are harmed by cheap imports from these countries.

The US International Trade Commission voted 4-0 in favor of launching a formal investigation into allegations of “dumping” and “subsidies” provided by Asian governments to solar producers, and this vote is the first of four major steps in this process.

American manufacturers of solar cells and panels claim that their counterparts in Southeast Asia are selling their products at prices below the cost of production, benefiting from generous government subsidy programs, including those from China.

The US Solar Manufacturing Trade Commission coalition, which includes companies such as Convalt Energy, First Solar, Hanwha Q Cells USA and Mission Solar Energy, argues that these practices hinder the expansion of US solar manufacturing and threaten jobs.

Imposing tariffs on solar panels from Southeast Asia raises concerns about their impact on the United States’ shift toward clean energy.

Some Chinese officials and U.S. renewable energy developers fear such fees will slow the country’s efforts to combat climate change and raise the cost of solar projects.

The US Department of Commerce will now continue its investigation to determine whether illegal “dumping” and “subsidy” practices actually occurred.

The ministry will calculate the amount of customs duties to be imposed, and it is expected that initial duties will be imposed in July, with the possibility of imposing final duties later. The imposition of tariffs faces opposition from some quarters, including foreign manufacturers and solar developers in the United States, who fear that it will give major American manufacturers an unfair advantage and hinder competition in the market.

The US International Trade Commission’s decision will likely be challenged in the courts, but this legal process could take months or even years before a final decision is reached.

The US move to impose tariffs on solar panels from Southeast Asia complicates the situation.