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US imposes tariffs as high as 3,521% on solar imports from Southeast Asia
The US set new duties as high as 3,521 per cent on solar imports from four Southeast Asian countries, delivering a win for domestic manufacturers while intensifying headwinds already threatening the country's renewable power development.
The duties announced Monday are the culmination of a yearlong trade probe that found solar manufacturers in Cambodia, Vietnam, Malaysia and Thailand were unfairly benefiting from government subsidies and selling exports to the US at rates lower than the cost of production. The investigation was sought by domestic solar manufacturers and initiated under former President Joe Biden.
While the duties are set to benefit domestic manufacturers, they also will pinch US renewable developers that have long relied on inexpensive foreign supplies, heightening uncertainty for a sector whipsawed by political and policy changes in Washington.
The levies will be in addition to new widespread tariffs imposed by US President Donald Trump that have upended global supply chains and markets. The antidumping and countervailing duties, as they are known, are designed to offset the value of alleged unfair subsidization and pricing, as calculated by the Commerce Department.
The department's determination is a victory for domestic manufacturing that both Trump and Biden have tried to galvanize. Potential beneficiaries include Hanwha Q Cells and First Solar Inc., among others.
Although the promise of subsidies and demand stoked by Biden's Inflation Reduction Act have helped drive a wave of interest — and investment — in new domestic solar panel factories across the US, manufacturers warned those factories were imperiled by foreign rivals selling their equipment at below-market prices.
'This is a decisive victory for American manufacturing,' said Tim Brightbill, co-chair of Wiley's international trade practice and lead counsel for the coalition of solar companies that pursued the case.
The findings confirm 'what we've long known: that Chinese-headquartered solar companies have been cheating the system, undercutting US companies and costing American workers their livelihoods,' he said.
Countrywide duties were set as high as 3,521 per cent for Cambodia, reflecting the country's decision to stop participating in the investigation, according to the Commerce Department.
The US imported $12.9 billion in solar equipment last year from the four countries that would be subject to the new duties, according to BloombergNEF. That represents about 77 per cent of total module imports.
Companies not named in Vietnam face duties of as much as 395.9 per cent with Thailand set at 375.2 per cent. Country-wide rates for Malaysia were posted at 34.4 per cent. Jinko Solar was assessed duties of about 245 per cent for exports from Vietnam and 40 per cent for exports from Malaysia. Trina Solar in Thailand faces levies of 375 per cent and more than 200 per cent from Vietnam. JA Solar modules from Vietnam could be assessed at about 120 per cent.
Trina shares ended trading 2.6 per cent lower on Tuesday in Asia, while Jinko fell 2.9 per cent and JA Solar declined 0.7 per cent. Shares of First Solar gained 7.2 per cent in pre-market trading on Tuesday morning in the US, while Jinko fell 2.9 per cent and Canadian Solar Inc. declined 4.2 per cent.
'We don't think the higher rates will have much financial impact especially post recent reciprocal tariffs,' according to a note by BofA Global Research.
Indonesia is expected to have more than 20 gigawatts of foreign-owned solar manufacturing capacity by the middle of this year, from just 1 gigawatt at the end of 2022, according to BloombergNEF.
However, other nations including India, Indonesia and Laos could be targeted by a possible new round of duties later this year, according to a note by Roth Industries citing Joseph C. Johnson, an associate director at Clean Energy Associates.
Chinese solar maker JA Solar said in a written response to Bloomberg News that the company is closely monitoring the US tariff development while accelerating its globalization efforts. These include a manufacturing plant in Oman that will start operation by the end of 2025 with 6-gigawatt cells and 3-gigawatt module capacity.
The duties hinge on separate action by the US International Trade Commission, which is set to decide in about a month whether producers are being harmed or are threatened by the imports.
After similar duties were imposed on solar imports from China roughly 12 years ago, Chinese manufacturers responded by setting up operations in other nations that weren't affected by the tariffs. The US initiated a probe that was triggered by an April petition from the American Alliance for Solar Manufacturing Trade Committee, which represents companies including First Solar, Hanwha Q Cells and Mission Solar Energy LLC.
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Economic Times
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Some ethical brands are already showing a better way and offer clothes made under fairer conditions and with sustainable materials. These clothes are not as cheap or fast, but they represent a more conscious alternative especially for consumers concerned about synthetic fibres, toxic chemicals and environmental harm. Trump reshuffled the deck, but did not change the game Trump's trade rules aim to re-balance global trade in favour of American industry, yet have cost companies more than USD 34 billion in lost sales and higher costs. This cost will eventually fall on US consumers. In ultra-fast fashion, it mostly exposed how fragile and exploitative the system already was. Today, brands such as Shein and Temu are thriving in Australia. But unless we address the systemic inequalities in fashion production and rethink the incentives that drive this market, the true cost of cheap clothing will continue to be paid by those least able to afford it. PY PY This article was generated from an automated news agency feed without modifications to text.
