Solar manufacturers petition U.S. to impose tariffs on some imports

A coalition of U.S. solar power manufacturers on Wednesday called on the federal government to impose tariffs on imports from four Southeast Asian countries, alleging the countries are flooding the U.S. market with cheap products which threaten the national industry.

First solar and six other manufacturers say companies from Cambodia, Malaysia, Thailand and Vietnam are selling solar cells in the U.S. market at prices below the cost of production or receiving subsidies that prevent domestic manufacturers from competing.

The other six parties to the petition are Convalt Energy, Meyer Burger, Mission Solar, Qcells, REC Silicon and Swift Solar.

U.S. manufacturers have asked the International Trade Commission to determine that the domestic solar industry has been harmed. They are demanding that the Commerce Department impose tariffs on imports of solar cells from the four countries as a remedy.

First Solar shares rose about 1.5% on the news.

The companies allegedly targeted by the ITC and Commerce investigations are primarily headquartered in China. U.S. manufacturers say the Chinese government is providing subsidies to manufacturers in Cambodia, Malaysia, Thailand and Vietnam, as part of Beijing’s Belt and Road Initiative.

“This petition is not seeking special treatment from the U.S. government,” Tim Brightbill, the lead attorney on the case, told reporters in a phone call Tuesday. “This is simply asking for our current trade laws to be enforced.”

Tariffs have divided the U.S. solar industry. While manufacturers such as First Solar support tariffs on some imports, the Solar Energy Industries Association opposes them, arguing that trade barriers raise prices, reduce installations and hurt jobs.

Solar panel prices fell nearly 50% globally in 2023 from the previous year, with manufacturing capacity tripling since 2021, according to a January report from the International Energy Agency . China’s market share in global supply chains is between 80% and 95%, according to the report.

The global supply glut has led to a stockpile of 45 gigawatts of solar modules in the United States at the end of 2023, nearly double the installations planned for 2024, according to the IEA.

Treasury Secretary Janet Yellen told CNBC earlier this month that the Biden administration would not rule out imposing tariffs on subsidized clean energy exports from China.

The ITC and Commerce Department investigations will take about 12 months, Brightbill said. The tariffs could be imposed as soon as possible after the Commerce Department makes a preliminary decision, which will take about four to six months, he said.