Energy
Wednesday, April 24th, 2024 2:16 pm EDT
Key Points
- A coalition of U.S. solar manufacturers has petitioned the federal government to impose tariffs on imports from Cambodia, Malaysia, Thailand, and Vietnam, alleging that these nations are flooding the U.S. market with cheap solar products, threatening the domestic industry.
- First Solar and six other manufacturers claim that companies from the mentioned Southeast Asian countries are engaging in dumping practices, selling solar cells in the U.S. below production costs or benefiting from subsidies, which hinders the competitiveness of domestic manufacturers.
- The coalition has requested the International Trade Commission (ITC) to determine that the domestic solar industry has been harmed and urged the Commerce Department to impose tariffs on solar cell imports from the four countries as a remedy. This move has divided opinions within the U.S. solar industry, with some, like First Solar, supporting tariffs, while others, like the Solar Energy Industries Association, opposing them, citing potential negative impacts on prices, installations, and jobs.
A coalition of U.S. solar manufacturers has lodged a petition with the federal government, alleging that four Southeast Asian nations—Cambodia, Malaysia, Thailand, and Vietnam—are inundating the U.S. market with low-cost solar products, posing a threat to domestic industry. First Solar and six other manufacturers, including Convalt Energy, Meyer Burger, and Mission Solar, accuse companies from these nations of dumping solar cells at prices below production costs or benefiting from subsidies, hindering the competitiveness of U.S. manufacturers. They seek a determination from the International Trade Commission (ITC) that the domestic industry has been harmed, urging the Commerce Department to impose tariffs on solar cell imports from the implicated countries. Although this news led to a 1.5% increase in First Solar’s shares, the targeted companies are mostly headquartered in China, with the U.S. manufacturers alleging Chinese government subsidies channeled through initiatives like the Belt and Road Initiative as a contributing factor to the issue. Tim Brightbill, the lead attorney, emphasized that the petition aims for the enforcement of existing trade laws rather than seeking special treatment. However, the proposed tariffs have sparked division within the U.S. solar industry, with some, like First Solar, supporting them, while others, like the Solar Energy Industries Association, oppose them, fearing increased prices, reduced installations, and job losses. The global solar panel market witnessed a 50% price decline in 2023, attributed to a surge in manufacturing capacity, particularly in China, which holds a significant share of global supply chains. This oversupply led to a substantial stockpile of solar modules in the U.S. by the end of 2023, nearly double the forecasted installations for 2024. Treasury Secretary Janet Yellen hinted at potential tariffs on subsidized clean energy exports from China, underscoring the broader trade implications of the issue. The ITC and Commerce Department investigations are expected to take about 12 months, with tariffs potentially being imposed after the Commerce Department reaches a preliminary determination, a process estimated to take four to six months.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/24/solar-manufacturers-petition-us-to-impose-tariffs-on-some-imports.html
