A coalition of American solar companies petitioned the federal government to impose tariffs on four Southeast Asian countries' solar imports that threaten American businesses.

The Petition for Tariff Enforcement

First Solar, Convalt Energy, Meyer Burger, Mission Solar, Qcells, REC Silicon, and Swift Solar claim that companies from Cambodia, Malaysia, Thailand, and Vietnam are selling below production costs solar cells in the US or benefiting from subsidies, making it hard for American manufacturers to compete.

The US manufacturers have requested the International Trade Commission to confirm the harm to the domestic solar industry and asked the Commerce Department to impose tariffs on solar cell imports as a solution.

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According to the US manufacturers, the companies involved in the ITC and Commerce Department investigation are mostly based in China. Beijing's Belt and Road Initiative provides subsidies to Cambodia, Malaysia, Thailand, and Vietnam.

Tim Brightbill, the lead attorney in the case, said in a call to reporters Tuesday that the petition does not seek special treatment from the US government but rather requests that the current trade laws be enforced.

President Biden Waving Tariff Imposition in 2023

The Commerce Department found Chinese producers sending their solar products to the US via Cambodia, Malaysia, Thailand, and Vietnam to bypass tariffs in August 2023. President Joe Biden waived the imposition of tariffs on those products until June, as stated in a press release.

Brightbill informed reporters that when Biden's waiver expires in June, most imports from Southeast Asian nations would not be subject to tariffs because Chinese companies have already relocated their manufacturing operations to the four countries mentioned.

Manufacturers' Deep Concern on The Petition

Tariffs have caused a split in the US solar industry. The manufacturers' request to impose duties faced opposition from several organizations, including the Solar Energy Industries Association, American Clean Power Association, Advanced Energy United, and the American Council on Renewable Energy.

The trade groups expressed their deep concern that the petitions could increase market volatility throughout the US solar and storage industry, causing uncertainty at a critical time. They urged the White House to explore alternative solutions to address the concerns raised by manufacturers.

Array Technologies, a manufacturer of solar tracking technology, expressed concerns that the petitions could negatively impact jobs and hinder US clean energy objectives. Array's CEO, Kevin Hostetler, stated that the case could adversely affect clean energy jobs and American solar manufacturing, leading to uncertainty and project delays, thus impeding the nation's progress in achieving its clean energy deployment and manufacturing targets.

In 2023, solar panel prices dropped by almost 50% worldwide compared to the previous year, according to a January report from the International Energy Agency. The report highlighted that manufacturing capacity has tripled since 2021 and also noted that China's market share in global supply chains ranges from 80% to 95%. Due to the worldwide supply surplus, there was a stockpile of 45 gigawatts of solar modules in the US by the end of 2023, which was almost double the forecasted installations for 2024, as reported by the IEA.

Treasury Secretary Janet Yellen recently informed CNBC that the Biden administration is open to imposing tariffs on subsidized clean energy exports from China. Regarding the ITC and Commerce Department investigations, Brightbill noted that it will likely take approximately 12 months to conclude and that the earliest tariffs could be implemented is after the Commerce Department issues a preliminary determination, a process expected to take about four to six months.

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