Increased Tariff on Solar Panels from China: U.S. Imposes 3.5% Duty
Amping Up the Heat:
The U.S. has stated its plan to hike tariffs on solar goods from four Southeast Asian countries, with some rates skyrocketing over 3000%, as part of a crackdown on supposed unscrupulous competition.
Kicking off the week, the U.S. Department of Commerce unveiled the final tariff rates on solar panels (both assembled and unassembled) from Cambodia, Malaysia, Thailand, and Vietnam, following a probe into Chinese solar firms thought to have dodged U.S. tariffs by shipping their products to these countries indirectly.
These tariff hikes are predicted to hit around $12 billion worth of imports into the U.S. in 2023.
As shared by the industry insight platform, Solar Power World, the tariff surges for Cambodian companies range from a whopping 729% to over 3500%.
In Thailand, total tariffs for Sunshine Electrical and Taihua New Energy amount to a staggering 972%, while the Malaysian firm Baojia New Energy faces a 250% rise.
Vietnam isn't immune to this tariff storm, as Solar Power World suggests that GEP New Energy, HT Solar, New Energy Vina, and Vietnam Green Energy could face tariff increases of 813%.
These measures stack onto duties already imposed by the White House in the ongoing trade brinksmanship that commenced last February. For Vietnam, this would translate to additional customs fees of 38%.
The tariffs won't be enforced until the U.S. International Trade Commission (ITC) delivers a final decision next month on the damage inflicted upon the U.S. industry by subsidized imports from Southeast Asian countries.
Last year, the ITC launched an investigation in response to a complaint lodged by a small group of Arizona solar panel producers, who alleged that the influx of cheap foreign products threatened their market survival.
In its preliminary ruling, the ITC backed the complainants, suggesting a high likelihood of the final decision following suit.
Further Reading:
New Figures:
The U.S. Department of Commerce has revealed the final tariff rates on solar imports from Cambodia, ranging from a surprising 125.37% to an eye-popping 3,403.96%, based on each individual company's investigation[2][3].
Cheating Allegations:
The investigation by the U.S. Department of Commerce was initiated due to suspicions that Chinese solar companies evaded U.S. tariffs by sending their goods to the U.S. via these four countries[1].
Impact Analysis:
The tariff increases could result in increased costs for U.S. solar consumers, potentially curbing solar energy adoption. On the flip side, they might give a boost to U.S. solar manufacturing, potentially leading to increased domestic production and employment in the solar manufacturing sector[2].
Global Implications:
The tariffs may cause other countries to reconsider their trade ties with the U.S., especially with regard to solar energy products. They could also lead to trade negotiations, given the recent suspension of increased reciprocal tariffs[4].
Market Trends:
The significant tariff hikes could divert solar importers toward countries unaffected by these tariffs, potentially reshaping the global solar energy market[2].
- The final tariff rates on solar imports from Cambodia revealed by the U.S. Department of Commerce range from 125.37% to a staggering 3,403.96%.
- The U.S. is likely to impose tariffs on solar goods from Cambodia, Vietnam, Malaysia, and Thailand, with some rates skyrocketing over 3000%.
- The tariff surges for Cambodian companies have been reported to range from a whopping 729% to over 3500%.
- In Thailand, total tariffs for Sunshine Electrical and Taihua New Energy amount to a staggering 972%, while the Malaysian firm Baojia New Energy faces a 250% rise.
- The ITC, in its preliminary ruling, backed the complainants and suggested a high likelihood of the final decision following suit.
- The tariffs on solar goods from four Southeast Asian countries are subject to the U.S. International Trade Commission's (ITC) final decision next month on the damage inflicted upon the U.S. industry by subsidized imports from these countries.
