U.S. gov't tentatively imposes tariffs on Southeast Asian solar panels

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U.S. gov't tentatively imposes tariffs on Southeast Asian solar panels

Published: 03 Oct. 2024, 18:42

LEE JAE-LIM
lee.jaelim@joongang.co.kr

Hanwha Q Cells' Dalton solar factory in Georgia [HANWHA Q CELLS]

The U.S. government tentatively decided to impose tariffs on solar panels imported from Southeast Asia following requests from solar manufacturers, including Korea’s Hanwha Q Cells, claiming that low-priced imports harm their businesses.

The U.S. Department of Commerce said on Tuesday that it issued a preliminary ruling to impose countervailing duties on solar cells imported from four Southeast Asian countries: Cambodia, Malaysia, Thailand and Vietnam.

The move follows the U.S. Commerce Department’s announcement in May that it would initiate antidumping and countervailing duty investigations of crystalline silicon photovoltaic cells across the four nations.

The case was brought forward by the American Alliance for Solar Manufacturing Trade Committee in April. It accused Chinese companies with factories in Southeast Asian regions of exporting their products below the manufacturing price in the U.S. market while benefiting from Chinese government subsidies.

The committee consisted of seven solar manufacturers operating in the U.S., including Hanwha Q Cells' U.S. subsidiary, Switerland’s Meyer Burger, Norway’s REC Silicon and U.S. firms First Solar and Mission Solar Energy.

The department has set preliminary tariff rates at 8.25 percent for Cambodia, 9.13 percent for Malaysia, 23.06 percent for Thailand and 2.85 percent for Vietnam.

Media outlets such as Bloomberg and Reuters evaluated the general rates as lower than anticipated.

Bloomberg stated that 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 U.S. manufacturers while raising the cost of solar power projects.”

The final ruling will be issued in April.

Tim Brightbill, an attorney with Wiley Rein in Washington who represents the committee, commented to U.S. media outlets that “some of the margins definitely do not yet reflect the full extent of government subsidies that are occurring in the industry" and said that the department may increase the rates in its final decision.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]