The preliminary results of a review conducted by the US Department of Commerce reveal that some solar products imported from Southeast Asia are being sold in the United States at prices below production cost, unfairly undercutting American businesses. In an effort to counteract the harm caused to US enterprises by this practice, the Department of Commerce has imposed tariffs as high as 271% on these products.
The release of this preliminary determination by the US Department of Commerce on Friday, November 29, marks another victory for American solar panel manufacturers. These companies believe that the inexpensive imported products from Southeast Asia have harmed their business and undermined US government investments aimed at promoting domestic supply chain development.
The crux of the issue lies in crystalline silicon photovoltaic cells imported from Cambodia, Malaysia, Thailand, and Vietnam, as well as components made from these cells. Currently, a significant portion of these cells and equipment in the US are imported from these countries. Prior to the announcement of these review results nearly two months ago, the Department of Commerce had issued another preliminary finding from an independent but related investigation, stating that solar products imported from Southeast Asia benefited from local government assistance, which put US companies at a disadvantage.
These investigations represent the latest efforts of American manufacturers to combat foreign competitors. Around 12 years ago, following the imposition of similar tariffs on solar products imported from China by the US, one of the responses taken by Chinese manufacturers was to establish operations in other Asian countries not impacted by US tariffs.
In April, the American Alliance for Solar Manufacturing Trade Committee, made up of leading US solar manufacturers, filed an application that prompted the Department of Commerce to initiate an investigation into products from Southeast Asia.