Publication date:
June 9, 2024
US Solar Tariffs Revived on Southeast Asian Imports
Tariffs on cheap solar imports from Asia have been reinstated, aiming to provide stability and support to US solar producers.
Renewable Energy
Tariffs on cheap solar imports from Asia have been reinstated after a two-year moratorium expired. The renewed taxes target Chinese-affiliated solar products exported from Southeast Asia. The move is intended to level the playing field for US manufacturers, bringing stability to the marketplace. The renewal follows concerns that Chinese solar products were entering the US duty-free through Southeast Asia, prompting the Department of Commerce to impose tariffs on the region as well. The end of the moratorium marks a crucial step in ensuring fair competition for domestic solar producers. The tariffs aim to mitigate price volatility and create a more stable environment for industry players, including developers and producers. While tariffs can contribute to a 25%-30% price correction for solar modules, industry experts emphasize that pricing should not be the primary metric for solar deployment but rather an instrument to foster needed investment in the sector. Moreover, anticipated trade adjustments and tax credit guidance under the Inflation Reduction Act could further strengthen US solar competitiveness. As the market responds to the tariffs' reintroduction, major Chinese solar firms have begun suspending operations in Southeast Asia, signaling potential shifts in import volumes. US producers are advocating for additional protections, advocating for more tariffs to safeguard domestic solar manufacturing.