US trade officials are set to announce new tariffs this week on solar panels imported from four Southeast Asian countries. American manufacturers have argued that these nations benefit from unfair subsidies, making it difficult for U.S. products to compete.
The announcement, according to Reuters, marks the first of two preliminary decisions the Commerce Department will make this year in a trade case initiated by South Korea’s Hanwha Qcells, Arizona-based First Solar, and several smaller companies aiming to safeguard billions of dollars in U.S. solar manufacturing investments.
Domestic producers contend that the influx of inexpensive imports from Chinese companies operating in Malaysia, Vietnam, Thailand, and Cambodia jeopardizes President Joe Biden’s objective of enhancing domestic manufacturing of clean energy technologies essential for addressing climate change.
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For the first time, the Commerce Department’s decision will take into account the effects of cross-border subsidies, such as Chinese government support for manufacturers in Vietnam or other countries.
Previously, countervailing duties addressing such subsidies were prohibited, but this year the department implemented a rule that allows them.
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In its April petition, the Hanwha-led American Alliance for Solar Manufacturing Trade Committee claimed that Chinese manufacturers operating in the four Southeast Asian nations have benefitted from substantial subsidies provided by those governments, including access to low-cost financing, electricity, and land and tax exemptions.
The group also asserted that these companies receive support from China in the form of discounted raw materials and components, along with additional backing through the Belt and Road Initiative, an infrastructure program aimed at connecting China with regions across Asia, the Middle East, and Europe.
