NEW YORK: US solar manufacturers are calling on the US International Trade Commission (ITC) to close a tariff loophole that could allow millions of dollars’ worth of solar equipment from Southeast Asia to enter the country duty-free before new tariffs are implemented.
The ITC recently ruled that solar imports from Cambodia, Malaysia, Thailand, and Vietnam — which collectively dominate the US market — are harming domestic producers. This decision paves the way for tariffs ranging from 34% to 3,521%, depending on the country and manufacturer involved.
While the agency stated it would publish the ruling by June 30, the American Alliance for Solar Manufacturing has filed a petition urging the decision be finalised by June 2. The industry group warned that delaying publication could enable companies to flood the US with low-cost panels before the duties take effect.
“If the ruling is published after June 2, there is a real risk that millions in equipment could bypass the new tariffs,” the alliance said in its petition.
The push adds a new dimension to a long-running campaign by US-based solar manufacturers to improve their global competitiveness and protect domestic manufacturing.
According to Wood Mackenzie, developers stockpiled between 40GW and 50GW of solar panels by the end of last year in anticipation of the duties.
The ITC has declined to comment on the petition.
Companies such as Hanwha Q Cells and First Solar Inc. have attributed the influx of cheap imports from Southeast Asia as a major challenge in sustaining domestic operations, despite federal tax incentives aimed at bolstering clean energy manufacturing.
In 2024, the US imported US$12.9 billion in solar equipment from the four Southeast Asian countries, making up nearly 80% of total US solar imports, according to BloombergNEF.
These new duties are distinct from broader tariffs introduced during the Trump administration, which sought to counter trade imbalances across multiple sectors.–BLOOMBERG
