US trade officials are expected to announce new tariffs on solar panels imported from four Southeast Asian countries, following complaints from American manufacturers like Hanwha Qcells and First Solar.
These companies argue that unfair subsidies make US products less competitive, according to a report from Reuters.
The news comes just a month after Bloomberg reported on the US considering these tariffs on Southeast Asian imports.
The influx of cheaper imports from Chinese companies operating in Malaysia, Vietnam, Thailand, and Cambodia is seen as a threat to President Joe Biden’s goal of expanding domestic clean energy manufacturing to combat climate change.
“They are hopeful that these cases will help to level the playing field,” said Tim Brightbill, the group’s attorney.
For the first time, the US Department of Commerce will consider cross-border subsidies, such as Chinese government support for manufacturers in other countries. Previously, such duties were banned, but a recent rule change now permits them.
In an April petition, the American Alliance for Solar Manufacturing alleged that Chinese manufacturers in Southeast Asia benefit from cheap financing, tax breaks, and raw materials, often backed by China’s Belt and Road Initiative.
A separate anti-dumping case, aimed at addressing below-market pricing, is expected to see a preliminary decision in November. The US already imposes various duties on solar imports.
However, not all US solar manufacturers support additional tariffs. Companies that assemble panels rely on inexpensive solar cells from Southeast Asia, and many of these plants are owned by Chinese manufacturers.
“Imposing tariffs on solar cell imports… will stifle America’s ability to onshore the solar supply chain and meet the fast-growing demand for clean, affordable, and reliable power,” said Jim Murphy, president of Invenergy, a solar project developer.
