U.S. trade officials announced on Friday a new round of tariffs on solar panel imports from four Southeast Asian nations after American manufacturers complained that companies there are flooding the market with unfairly cheap goods.
It is the second of two preliminary decisions that President Joe Biden's Commerce Department is making this year in a trade case brought by Korea's Hanwha Qcells (000880.KS), Arizona-based First Solar Inc (FSLR.O) and several smaller producers seeking to protect billions of dollars in investments in U.S. solar manufacturing.
The group, the American Alliance for Solar Manufacturing Trade Committee, accused big Chinese solar panel makers with factories in Malaysia, Cambodia, Vietnam and Thailand of causing global prices to collapse by dumping products into the market.
According to a preliminary decision posted on the U.S. Commerce Department's website on Friday, the agency calculated dumping duties of between 21.31% and 271.2%, depending on the company, on solar cells from Cambodia, Malaysia, Thailand and Vietnam.
China's Trina Solar (688599.SS) received a dumping margin of 77.85% for products it makes in Thailand and 54.46% for those it produces in Vietnam.
In contrast, the Commerce Department did not lay out any dumping margin for Hanwha Qcells products made in Malaysia. In October, the department had calculated subsidy rate of 14.72% for the company.
The department's final determinations are set for April 18, 2025, with the International Trade Administration set to finalize its determinations the following June 2 and final orders expected June 9.
"With these preliminary duties, we are moving closer to addressing years of harmful unfair trade and protecting billions of dollars of investment in new American solar manufacturing and supply chains," said Tim Brightbill, partner at Wiley Rein and lead counsel to the petitioners.
Representatives for Jinko and Trina were not immediately available for comment.
Most solar panels installed in the United States are made overseas, and some 80% of imports come from the four nations targeted in the Commerce Department probe.
Dumping occurs when a company sells a product in the United States at a price below its cost of production or lower than what it charges in its home country.
