New Tariffs Address Loophole, But With Widespread Ramifications
BMI View : The new tariffs proposed by the US government on Chinese solar panel makers will effectively seal a loophole used by these manufacturers to circumvent tariffs imposed on Chinese solar cells in 2012. These companies will now have to move production of both solar cells and panels overseas in order to avoid tariffs. We believe that US solar manufacturers stand to gain the most from these tariffs, but their gain will be to the detriment of US-based project developers, investors, and consumers.
On June 3 2014, the US Department of Commerce announced its preliminary decision to impose steep import duties on Chinese solar panel makers, asserting that these manufacturers had benefited from unfair subsidies. The key details of the tariffs are as follows:
Preliminary duties of 35.2% and 18.6% would be imposed on imports of Suntech and Trina Solar respectively, while other Chinese solar producers will immediately receive tariffs of 27%.
Growth Already Set To Slow US - Solar Capacity, MW (LHS) and %y-o-y (RHS)