Solar Panel Tariff May Further Strain U.S.-China Trade
Companies that import solar panels to the United States are facing up to $70 million [2.5%] in unexpected tariffs. (...) The decision is legally binding on most solar panels imported into the United States. But virtually no one in the industry became aware of it until the last few weeks, Meanwhile, unpaid duties piled up, along with penalties that are likely to double the cost. (...)
[T]he duties come at a particularly difficult time for the global solar power industry. Many panel manufacturers are losing money because of fierce competition from ever-expanding production in China and a worldwide downturn that has driven down prices. Raising prices now to cover past tariffs will be hard because the market is glutted with panels; prices have fallen a fifth since early this year. (...) The Solar Energy Industries Association, a coalition of domestic and foreign companies whose board chairman is an executive from Suntech, China’s biggest solar panel maker, argues that American tariffs on solar panels could lead other countries to impose tariffs on American exports.