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US ITC continues to investigate solar panel imports from four Southeast Asian countries

US ITC continues to investigate solar panel imports from four Southeast Asian countries

July 11, 2024

  The U.S. International Trade Commission (ITC) voted to continue investigating whether solar panels from four Southeast Asian countries, Malaysia, Thailand, Cambodia and Vietnam, are impacting domestic manufacturing, a move that could lead to the U.S. imposing tariffs on most imported panels.

  The ITC is responsible for determining whether domestic industries are harmed by imported products in this case. The specific level of tariffs is determined by the U.S. Department of Commerce. The vote is the latest action taken in response to a trade complaint filed by U.S. solar panel manufacturers in April. Hanwha Qcells, First Solar and other companies accused Chinese companies of setting up factories in the above four Southeast Asian countries and dumping solar panels in large quantities into the U.S. market at prices below production costs.

  According to a report on the website of the New York Times on June 7, tariffs aimed at protecting the U.S. solar industry from foreign competition came back into effect on the 6th, ending a two-year suspension approved by U.S. President Biden to promote the popularization of solar energy in the United States.

  The report said that these tariffs will apply to certain solar products produced by Chinese companies in Southeast Asia.

  The Biden administration has been trying to develop the U.S. solar industry by providing tax credits, and more than 30 companies have announced new investments in U.S. manufacturing in the past year.

  But U.S. solar companies say they are still struggling to survive as competitors in China and Southeast Asia sell solar panels in large quantities to the global market at prices far lower than what American companies need to stay in business.

  This forces Biden to make a tricky choice: whether to continue to welcome cheap imports that help the United States get rid of fossil fuels, or to block them to protect new American solar plants built with taxpayer funds.

  The tariffs that took effect on the 6th reflect this dilemma. They were approved two years ago and apply to certain solar products imported into the United States from Cambodia, Thailand, Malaysia and Vietnam when U.S. officials ruled that some Chinese companies tried to bypass tariffs previously imposed by the United States on China by passing through other countries. The exact tariff rate depends on the company, but it can be more than 250%.

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