US slaps tariffs on solar panel companies dodging China duties by finishing products in Southeast Asia
- China’s BYD, Trina Solar, Longi Green Energy and Canadian Solar were completing products in Cambodia, Malaysia, Thailand and Vietnam then shipping to the US
- US solar manufacturers have struggled to compete with China for years and are now enjoying investment due to subsidies in Joe Biden’s climate change law
The United States on Friday will finalise a decision to impose import duties on solar panel makers who finished their products in Southeast Asian nations to avoid tariffs on Chinese-made goods, according to a senior Commerce Department official.
The decision, which largely mirrors a preliminary finding the agency made in December, was opposed by buyers of solar panels that rely on cheap products made overseas to make their projects competitive.
But it is good news for the small US solar manufacturing industry, which for years has struggled to compete with Chinese goods and is enjoying renewed investment due to subsidies in US President Joe Biden’s landmark climate change law.
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The Commerce probe found that units of Chinese companies BYD, Trina Solar, Longi Green Energy and Canadian Solar were dodging US tariffs on Chinese solar cells and panels by conducting minor processing to finish their products in Cambodia, Malaysia, Thailand and Vietnam before shipping them to the US market.
Those countries account for about 80 per cent of US panel supplies.
The agency will also impose duties on New East Solar because it refused to cooperate with an on-site audit of its operations in Cambodia, the official said.
Other companies operating in those nations have the ability to pursue a certification process to show that they are not circumventing tariffs. To become certified, solar cells and panels must contain non-Chinese wafers and three other key components.
The US has had anti-dumping duties in place for a decade on Chinese-made solar products after a Commerce probe found Chinese companies were receiving unfair government subsidies that kept their prices artificially low.
The companies and others will face the same duty rates the United States already assesses on their Chinese-made products.
They will not kick in, however, until June of 2024 thanks to a two-year waiver from Biden that was intended to ensure ample panel supplies while domestic manufacturing ramps up.
