US confirms up to 250 per cent tariffs on Chinese solar imports
The US has imposed tariffs of up to 250 per cent on solar imports from China, after claiming the country’s manufacturers had benefitted from government subsidies and “dumped” products on the American market at below the cost of production.
The Commerce Department yesterday revised a preliminary decision to impose tariffs made in May following a complaint brought by the US arm of German manufacturer SolarWorld.
It claimed China has sold solar cells in the US between 18 to 250 per cent below fair value and accused the Beijing government of unfairly subsidising around 16 per cent of its solar exporters’ costs.
Large Chinese manufacturers such as Suntech Power and Trina Solar will be affected by the new tariffs, with most companies facing levies of between 34 and 47 per cent. However, a loophole means panels partially made outside of China are exempt.
The loophole angered Gordon Brinser, president of SolarWorld Industries America, who said it would make the decision difficult to enforce.
However, he added that the decision was “one part of a solution that will help American solar manufacturers recover from China’s unfair trade practices”.
The tariffs are likely to further enflame tensions between the US and China, which itself instigated a UN investigation into whether US tariffs breach international trade rules last month.
Meanwhile, Barack Obama and Mitt Romney have both taken a tough line on Chinese trade issues ahead of the Presidential election next month.
Obama has upped pressure on China of late, blocking a Chinese company from buying four US wind farms, a decision that has now attracted a lawsuit, and imposing tariffs on tyres imported from China.
Beijing has also come under pressure from Europe where earlier this year a coalition of manufacturers filed both anti-dumping and anti-subsidy duty cases with the European Commission. They blame artificially cheap Chinese imports for around 20 European companies going out of business in 2012 alone.
The US tariffs very between manufacturers, with imports of PV cells made by Trina Solar subject to duties of just over 18 per cent, on top of 15.97 per cent tariffs imposed to counter subsidies.
Suntech, the world’s largest solar manufacturer, faces levies of almost 32 per cent, as well as 14.78 per cent anti-subsidy tariffs.
An additional 59 Chinese companies will be subject to an anti-dumping penalty of almost 26 per cent, while all other Chinese producers will be subject to a 249.96 per cent rate to deter dumping.
An adjustment will be used to reduce the actual tariffs collected because the companies are subject to both dumping and subsidy penalties.
The levies were criticised by the Coalition for Affordable Solar Energy (CASE), which said a potential trade war would hurt the industry and consumers.
“We are hopeful that continued innovations in technology, a competitive global marketplace, and demand-generated pressure for lower prices will take precedence moving forward,” said Jigar Shah, president of CASE, in a statement.
“We believe that global competition is good for American solar consumers and companies.”
The Commerce Department yesterday revised a preliminary decision to impose tariffs made in May following a complaint brought by the US arm of German manufacturer SolarWorld.
It claimed China has sold solar cells in the US between 18 to 250 per cent below fair value and accused the Beijing government of unfairly subsidising around 16 per cent of its solar exporters’ costs.
Large Chinese manufacturers such as Suntech Power and Trina Solar will be affected by the new tariffs, with most companies facing levies of between 34 and 47 per cent. However, a loophole means panels partially made outside of China are exempt.
The loophole angered Gordon Brinser, president of SolarWorld Industries America, who said it would make the decision difficult to enforce.
However, he added that the decision was “one part of a solution that will help American solar manufacturers recover from China’s unfair trade practices”.
The tariffs are likely to further enflame tensions between the US and China, which itself instigated a UN investigation into whether US tariffs breach international trade rules last month.
Meanwhile, Barack Obama and Mitt Romney have both taken a tough line on Chinese trade issues ahead of the Presidential election next month.
Obama has upped pressure on China of late, blocking a Chinese company from buying four US wind farms, a decision that has now attracted a lawsuit, and imposing tariffs on tyres imported from China.
Beijing has also come under pressure from Europe where earlier this year a coalition of manufacturers filed both anti-dumping and anti-subsidy duty cases with the European Commission. They blame artificially cheap Chinese imports for around 20 European companies going out of business in 2012 alone.
The US tariffs very between manufacturers, with imports of PV cells made by Trina Solar subject to duties of just over 18 per cent, on top of 15.97 per cent tariffs imposed to counter subsidies.
Suntech, the world’s largest solar manufacturer, faces levies of almost 32 per cent, as well as 14.78 per cent anti-subsidy tariffs.
An additional 59 Chinese companies will be subject to an anti-dumping penalty of almost 26 per cent, while all other Chinese producers will be subject to a 249.96 per cent rate to deter dumping.
An adjustment will be used to reduce the actual tariffs collected because the companies are subject to both dumping and subsidy penalties.
The levies were criticised by the Coalition for Affordable Solar Energy (CASE), which said a potential trade war would hurt the industry and consumers.
“We are hopeful that continued innovations in technology, a competitive global marketplace, and demand-generated pressure for lower prices will take precedence moving forward,” said Jigar Shah, president of CASE, in a statement.
“We believe that global competition is good for American solar consumers and companies.”
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