U.S. Solar Manufacturers Seek Tariffs on $12.5 Billion of Southeast Asian Imports

A coalition of U.S. solar manufacturers, represented by the American Alliance for Solar Manufacturing Trade Committee, has filed antidumping and countervailing duty petitions with the U.S. International Trade Commission and the U.S. Department of Commerce. The petitions allege that solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam, primarily by Chinese-headquartered companies, are being dumped and unfairly subsidized, causing injury to the U.S. solar industry.

The manufacturers claim that China's industrial policy has led to massive subsidization in China and Southeast Asia, resulting in a glut of solar panels being sold at prices below the cost of production. In 2023, imports of solar cells and panels from Southeast Asia exceeded $12 billion and surpassed U.S. installations by nearly 2 to 1. The petitioners argue that this undermines the ability of U.S. solar manufacturers to compete on their own merits and threatens the growth of the domestic solar industry.

Why this matters: The future of the U.S. solar industry is at stake, as current market conditions are crippling domestic solar manufacturers. The petitions seek to enforce trade laws, ensure American clean energy security, safeguard well-paying American jobs, and promote the stability of the domestic solar industry.

The targeted companies are primarily headquartered in China, and the U.S. manufacturers allege that the Chinese government is providing subsidies through the Belt and Road Initiative to manufacturers in the four Southeast Asian countries. The petitioners are seeking duties as high as 271% on the imports, which account for about 80% of the solar panels used in the U.S.

However, the petition has faced opposition from various trade groups, who are concerned that the tariffs will lead to market volatility and undermine U.S. clean energy goals. While another batch of tariffs could bolster U.S. solar manufacturing, it could also make solar power projects more expensive, risking one of Biden's goals of accelerating panel installations to combat climate change.

The Commerce Department will determine whether to initiate the investigations within 20 days, and the entire process is expected to take approximately one year, with final determinations likely occurring in spring 2025. "The near monopoly China has on solar manufacturing also presents a significant climate challenge, as Chinese solar products have a much higher carbon footprint than US-produced solar products," the Alliance stated in the petitions.

Key Takeaways

• U.S. solar manufacturers file trade petitions against imports from Southeast Asia.
• Imports from Southeast Asia surpassed U.S. solar installations by nearly 2 to 1 in 2023.
• Petitioners seek duties up to 271% on imports, which account for 80% of U.S. solar panels.
• Tariffs could bolster U.S. manufacturing but also make solar projects more expensive.
• Chinese solar products have a higher carbon footprint than U.S.-produced solar products.