The U.S. Commerce Department recently announced it will impose higher countervailing duties on solar cells and modules imported from Thailand-based Trina Solar Science & Technology. The move has sparked new concerns about the economic impact on the domestic solar industry.
Initially, Trina received a de minimis subsidy rate, but the government’s new analysis now sets that rate at 13.59%. This stems from the Commerce Department’s decision to factor in “cross-border” Chinese subsidies that allegedly support production in Thailand—covering materials such as silicon wafers, silver paste, and solar glass.
The higher countervailing duty rate has also been extended to other Thai producers. Sunshine Electrical and Taihua New Energy face an increased preliminary rate of 39.27%. This is notable because it marks the first time the Commerce Department has formally included transnational subsidies in a countervailing duty investigation, signaling potential implications for other trade cases where companies rely on Chinese inputs outside of China. The decision follows ongoing concerns over alleged unfair Chinese government support in the global solar supply chain, particularly as more manufacturers shift operations to Southeast Asia.
The tariffs will ultimately be paid by U.S. companies big and small that depend on imports for solar panels. Many companies are trying to move to a fully U.S.-based supply chain but say there’s not yet enough production of solar panel parts in the U.S. to meet domestic demand.
In 2018, the Trump administration imposed tariffs of up to 30% on solar equipment coming from China. Most solar products today are still imported, largely from Chinese companies.