Officials from the United States International Trade Commission, an independent federal agency that governs trade, recently announced a range of recommendations aimed at protecting domestic manufacturers of solar equipment from unfairly priced imports, especially from China. Those included limiting the imports of certain solar components and imposing tariffs of 10 percent to 35 percent on certain products.

The trade case was led by American solar producers but fought by big buyers of solar panels. Suniva, a Georgia based solar energy company, championed the case for higher tariff on imported solar energy equipment alongside another major player in the industry, SolarWorld Americas. Suniva called the International Trade Commission’s recommendations “disappointing” in a statement, saying they were not strict enough. The company called for the administration to employ stricter restrictions “necessary to save American manufacturing.”

According to LA Times, the company had previously shuttered its solar plants in Georgia and Michigan, and claimed that they could not compete with less-expensive imported solar equipment, principally from China. Big buyers of solar energy systems, however, disagreed with Suniva, saying that a higher Tarrif will drive up the price of solar panels in the U.S., undercut the cost-competitiveness of solar and ultimately reverse the progress we’ve had in promoting solar energy.

Even some of the other manufacturers in the industry disagreed with Suniva’s idea. Twenty-seven solar mounting equipment manufacturers and their domestic suppliers wrote an open letter to the U.S. International Trade Commission in response to the Suniva’s proposal. The companies worry that the high tariffs will raise prices throughout the supply chain and ultimately cost more American jobs than they would save. They argue that cheaper solar products from China have actually been a boon to their businesses and accelerated the adoption of solar energy in the United States, where it now powers millions of American homes and businesses. A representative of these companies, Frank Maisano, says that if President Trump chooses to impose the tariff, “it will set off a chain reaction threatening workers who install solar power projects, utilities who purchase the power, major commercial users of solar power, like retailers, as well as home installers.”

The recommendations from the Trade Commission will be sent to the president by Nov. 13. He will have 60 days to decide whether to accept or to reject these ideas as he makes a final decision, which will come as Mr. Trump is preparing to travel to China next week to meet with Chinese officials on a range of security and trade issues.

 

References:
https://www.nytimes.com/2017/10/31/business/solar-industry-import-tariffs.html
https://www.washingtonpost.com/news/energy-environment/wp/2017/10/31/federal-trade-panel-calls-for-protections-against-imported-solar-panels-which-trump-could-soon-implement/?utm_term=.044f208b909c
http://www.latimes.com/nation/la-na-solar-energy-tariffs-20171101-story.html