The American Alliance of Solar Component Manufacturers Trade Commission (AASMTC), which includes First Solar, Hanwha Q Cells and Meyer Burger, has filed a complaint with the US Department of Commerce questioning the rapid growth in imports of solar products from Vietnam and Thailand – which would harm the development of the US solar industry. This position is not unanimous in the market.
In the US, solar manufacturers supported by the Biden administration’s measures are concerned about the effectiveness of the protectionist regulatory framework in place. To boost and support module factory development projects, the government decided in early August to increase the amount of approved cell imports from 5 GW to 12.5 GW while maintaining a 14.5% tariff on imported solar cells.
However, a request was filed last April to investigate alleged unfair practices on solar technologies from Vietnam, Thailand, Malaysia and Cambodia. Note, for context, that according to US trade data reviewed by Reuters, these countries together accounted for nearly 80% of US imports in dollar terms last year. The investigation has indeed been opened, and the June 7 preliminary ruling by the US International Trade Commission (USITC) states that subsidized and dumped imports from these countries “are currently harming US solar cell and module manufacturers.”
But since April, imports have risen sharply compared to the quarter before the complaint, including a 39% increase for imports from Vietnam and 17% for imports from Thailand.
On August 15, the American Alliance for Solar Manufacturing Trade Committee (AASMTC), a coalition representing domestic solar panel manufacturers, including First Solar, Hanwha Q Cells and Meyer Burger, filed a complaint with the US Department of Commerce requesting that it consider the establishment of customs duties with retroactive effect. duties for Vietnam and Thailand.
The petition could succeed if the US Department of Commerce determines that a product subject to an anti-dumping and countervailing duty (AD/CVD) investigation has rapidly increased its imports into the US market. It can then agree on “critical circumstances” which allow tariffs to be imposed retroactively on the imported goods – up to 90 days before the first results.
But this does not please the entire market, which fears that limiting imports will slow down the development of solar module production factories and the solar market as a whole. According to Roth MKM, solar sector analyst, developers could even delay their projects pending clarification on tariffs. This can actually affect their supply and the construction price. The analyst even goes on to pv magazine USAa postponement “from 2024 to 2025” for certain installations, although he believes there is little chance that the lawsuit will succeed. By 2022, the US Energy Information Agency (EIA) had already reported that The threat of AD/CVD tariffs had led to delays or cancellation of approx. 20% of utility-scale solar generation capacity.
In this new case, provisional decisions should be made at the end of September 2024 for countervailing duties and at the end of November 2024 for anti-dumping duties. Final decisions are expected by mid-2025 at the latest.
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