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U.S. Plans Tariff Increases on Chinese Solar Products

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U.S. Plans Tariff Increases on Chinese Solar Products

by Geraldine S.
12/13/2024
in Green Supply Chains

The U.S. government has announced plans to raise tariffs on key solar energy components and tungsten products imported from China, a move aimed at bolstering domestic clean energy businesses and securing critical supply chains.

According to a notice from the Office of the U.S. Trade Representative (USTR), tariffs on Chinese-manufactured solar wafers and polysilicon will increase from 25% to 50%, while duties on specific tungsten products will rise from 0% to 25%. These changes are set to take effect on January 1 following a review of Chinese trade practices under Section 301 of the U.S. Trade Act of 1974.

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U.S. Trade Representative Katherine Tai highlighted the policy’s intent to mitigate what she described as “harmful practices” in global trade and to strengthen U.S. clean energy initiatives. “These actions complement domestic investments to promote a clean energy economy and enhance supply chain resilience,” she said.

The U.S. continues to assess alternative sources for critical minerals like tungsten, gallium, and graphite, materials that are currently dominated by Chinese exports. Tungsten, vital for industrial applications such as X-ray tubes and light bulb filaments, is one area where U.S. reliance on imports remains significant. Last year, U.S. imports of tungsten from China fell to $10.9 million from $19.5 million in 2022.

China’s dominance in global solar panel production is also under scrutiny. The International Energy Agency reports that China accounts for over 80% of solar panel production across all stages, a share that significantly exceeds its domestic demand. While this scale has lowered global costs for solar power, it has also concentrated supply chains within China, raising concerns among trading partners.

The U.S. government has maintained tariffs on Chinese goods introduced in prior administrations while taking a more targeted approach to protect strategic industries. The latest measures are part of broader efforts to diversify supply chains and support domestic manufacturing of clean energy technologies.

Stay informed on supply chain report news insights at The Supply Chain Report. For more on international trade, see ADAMftd.com for free tools.

#CleanEnergyPolicy #SolarSupplyChain #TradeUpdate #RenewableEnergy #CriticalMinerals

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