The U.S. Commerce Department has announced the imposition of preliminary duties on imports of solar cells and panels from four Southeast Asian countries. The countries affected are Cambodia, Malaysia, Thailand, and Vietnam, which collectively represent a significant portion of solar imports to the United States.
This decision follows a series of investigations initiated in May 2024 by the Commerce Department, in response to complaints filed by the American Alliance for Solar Manufacturing Trade Committee. The Committee, which includes several major solar manufacturers, argued that Chinese companies were circumventing existing U.S. tariffs by using factories in these Southeast Asian nations. The Committee claims that Chinese producers are receiving government subsidies, allowing them to sell solar panels at below-market prices, which could harm U.S. solar manufacturing.
The preliminary duties set by the Commerce Department range from 2.85% for Vietnam to 23.06% for Thailand, with other specific rates applying to certain companies within these countries. Notably, some companies in Vietnam and Thailand will see retroactive duties applied for a 90-day period starting in early July 2024.
The decision to impose these duties follows a previous determination by the Commerce Department in August 2024, which found that solar cells and modules produced in Cambodia, Malaysia, Thailand, and Vietnam using components from China were effectively circumventing the existing U.S. antidumping and countervailing duties on Chinese-made solar products.
The preliminary duties will be in effect until final determinations are made in April 2025. A second round of decisions, focusing on antidumping allegations, is expected by the end of November 2024. These measures have been controversial, with renewable energy groups expressing concerns that they could raise the cost of solar projects and slow the transition to renewable energy in the U.S. On the other hand, proponents argue that the duties are necessary to protect U.S. manufacturing from unfair competition.
The Commerce Department’s investigations are ongoing, and the final outcomes could lead to higher tariffs if further evidence of unfair trade practices is found.
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