US Imposes Duties on Southeast Asia Solar Panels

(Bloomberg) -- The US Commerce Department set preliminary duties on solar imports from Southeast Asia, after an initial finding the equipment is benefiting from illegal government aid. 

The determination marks an early victory for domestic panel makers who say cheap imports are harming their operations and threatening investments meant to cultivate a US solar supply chain. They asked the government to impose the duties, arguing the equipment benefits from unfair foreign subsidies and is being sold at prices below the cost of production.

The targeted nations provide the bulk of US solar cell and module imports, and the swift imposition of countervailing duties means renewable developers will face higher prices for that equipment right away.

The case marks only the latest bid by US manufacturers to confront overseas rivals beginning with similar duties on solar cells and modules from China roughly 12 years ago. Chinese manufacturers responded by setting up operations in other Asian nations that weren’t affected by the tariffs. 

The companies pursuing the latest claims as part of the American Alliance for Solar Manufacturing Trade Committee include First Solar Inc., Hanwha Qcells USA Inc., and Mission Solar Energy LLC.

Chinese officials have argued new tariffs threaten to slow the speed of the US energy transition and its fight against climate change. The case has drawn opposition from some foreign manufacturers and domestic renewable power developers, who argue tariffs could give an unfair advantage to larger incumbent US manufacturers while raising the cost of solar power projects.

The investigation is set to reach into next spring — and final rates could be raised, lowered or jettisoned altogether based on the results of the probe. Under Tuesday’s action, preliminary general rates would be 8.25% for Cambodia; 9.13% for Malaysia; 23.06% for Thailand; and 2.85% for Vietnam.

The initial rates were lower overall than anticipated. Under the preliminary determination, imports from Hanwha Q Cells Malaysia Sdn. Bhd. face a 14.72% rate.

The Commerce Department is still conducting its initial investigation into claims solar imports from the targeted countries are being dumped in the US and sold below the cost of production; it is expected to reveal a preliminary finding in that case in November.

©2024 Bloomberg L.P.