Charging Up Trade Wars: US Solar Manufacturers Call for Massive Tariffs on Indian & Southeast Asian Panels

The US solar industry is bracing for fresh volatility after a coordinated group of US panel manufacturers asked the US Commerce Department to apply high anti-dumping and countervailing duties on Indian, Indonesian, and Laotian solar imports. It is the latest indication of increased tensions surrounding global trade practices and America's solar supply chain.

 

The petition, filed by the Alliance for American Solar Manufacturing and Trade—basically industry producers like First Solar, Hanwha Qcells, Talon PV, and Mission Solar—alleges that these countries are exporting panels at less than fair market value. The majority of these factories, the petitioners assert, are controlled by Chinese companies attempting to circumvent prior US tariffs imposed on Southeast Asian nations like Vietnam, Malaysia, Thailand, and Cambodia.

 

Key Highlights:
New Tariff Petition: American producers call for new tariffs to offset what they call illegally underpriced and subsidized boards flooding in from India, Indonesia, and Laos.

 

Purported Dumping Margins: Dumping margins ranging from as much as 213.96% in India's case, 89.65% in Indonesia's case, to as much as 249.09% in Laos' case—the difference between artificially depressed export prices and home market prices.

 

US Market Impact: Indonesian and Laotian imports have skyrocketed, now accounting for 44% of US solar module imports (up from just 1.9% last year), and Indian exports have picked up since mid-2022.

 

Chain Reaction: The action comes in response to recent US tariffs on Southeast Asian producers that compelled international supply chains to reroute production to these newly targeted countries.

 

Next Steps: Investigations into the alleged subsidies and prices will be carried out by the International Trade Commission and the Department of Commerce. Tariffs will then be applied if both entities conclude that there is harm to US producers.

 

Industry Outlook: This petition introduces fresh uncertainty to the US solar sector—a sector already rocked by trade wars, policy upheaval, and a rush to satisfy climate targets.

 

Source: Bloomberg, Reuters, Solar Power World, PV-Tech, Financial Post