The U.S. Commerce Department recently announced the implementation of preliminary duties on solar cells and panels imported from four Southeast Asian nations as a win for domestic panel manufacturers who claim that low-cost imports are harming their businesses.
In response to a trade case filed by the Solar Manufacturing Trade Committee, the Commerce Department initiated investigations into crystalline silicon photovoltaic (PV) cells from Cambodia, Malaysia, Thailand, and Vietnam. The Committee includes leading solar producers like Hanwha Qcells USA Inc., Meyer Burger, REC Silicon, First Solar Inc., and Mission Solar Energy LLC.
The Committee argued that Chinese companies in these nations have received unfair subsidies from the Chinese government, leading to a flood of inexpensive panels in the U.S. market. This has caused prices to drop significantly, jeopardizing investments in U.S. solar manufacturing. They urged the Biden administration to impose tariffs on panels and cells from these countries.
The Commerce Department found that solar cells and modules produced in Cambodia, Malaysia, Thailand, or Vietnam using Chinese components and exported to the U.S. were circumventing existing duties on solar cells from China.
The Commerce Department’s ruling will now apply anti-subsidy countervailing duties on all solar imports from these nations, which accounted for 80% of U.S. imports in 2023. Specific rates have been set for each country, with some rates applying retroactively. The final decision is expected in April.
This decision reflects the shifting production strategies of Chinese firms to evade U.S. tariffs, potentially leading to more duties on Southeast Asian countries with ties to Chinese supply chains. However, these protectionist measures could have unintended consequences on U.S. companies reliant on affordable solar imports and could hinder the country’s green energy transition.