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It’s official: Chinese solar cells and modules hit with additional 25% tariff

By Kelly Pickerel | August 8, 2018

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U.S. Trade Representative Robert Lighthizer announced yesterday that approximately $16 billion worth of imported Chinese products will be subject to a 25% tariff under a Section 301 ruling. Included with these products are solar cells and modules under the category “diodes for semiconductor devices, other than light-emitting diodes.”

President Trump first requested the tariffs on June 15. Customs and Border Protection will begin collection of the additional 25% duties on the Chinese imports on August 23.

A Section 301 investigation allows the president to take all appropriate action to remove policies or practices of a foreign government that violate trade agreements or restrict U.S. commerce. In this instance, the United States found that China’s actions related to “technology, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.”

“Given the relatively small portion of cells and panels imported to the U.S. from China now due to the antidumping, countervailing and safeguard duties imposed on Chinese products, it is difficult to assess the effect additional duties would have on the U.S. market,” said SEIA president and CEO Abigail Ross Hopper in an email message on June 15 when the additional tariffs were first proposed.

The U.S. solar industry has already enforced 30% tariffs on imported solar panels since February. Any Chinese imported cells or panels would now have 55% tariffs, in addition to antidumping/countervailing duties in place for the last few years. After the United States initiated significant antidumping duties in 2014 against Chinese and Taiwanese producers, many companies shifted their production facilities to other Asian countries, including Malaysia, Thailand and Vietnam. The effect of this week’s new tariffs on Chinese imports will probably be slim.

Next on the government’s agenda related to solar is a potential 25% tariff on inverters, AC modules and non-lithium batteries. A decision should be made within the next month.

About The Author

Kelly Pickerel

Kelly Pickerel is editor in chief of Solar Power World.

Comments

  1. Brian says

    March 3, 2020 at 1:24 am

    Solar Panels already had a total of about 450% tariffs prior to all of this. The added duties are nothing compared to the overall picture. And they were put in place to keep a monopoly on the market by the few companies that do it here.

    It’s also not just China. When I found China, I checked Taiwan and found they had it to. Then checked and it was also Vietnam, Malaysia and oh look, Germany too. Germany, really? That’s not an anti-dumping law. That’s an anti-competition law.

    Reply
  2. Jun Lee says

    February 11, 2020 at 11:28 pm

    Just to make sure I understand the context correctly. What if solar cells are imported from China to make modules in South Korea, and then the modules are imported from South Korea to US. Does the additional 25% tariff on China still applies? (i.e. 50%)

    Reply
    • Kelly Pickerel says

      February 12, 2020 at 7:43 am

      Great question. My understanding is that the fully assembled module trumps the cells’ country of origin, so the Korean imported modules would just have the main tariff. I cannot confirm that is correct though. Will look through USITC documents to find.

      Reply
  3. MARIO CLEMENTI says

    February 4, 2020 at 4:17 pm

    Hi. What happend if i import solar pannels, paying our minimal tariff here to Chile from China, and then i make the export to US? When here we have very low tariff with Chine and with US indepently. Can i avoid that higest tariff that US have to Chinese pannels?

    Reply
    • Kelly Pickerel says

      February 5, 2020 at 7:55 am

      Imported solar panels from any country are tariffed in the United States.

      Reply
  4. Lingua Frenulum says

    March 31, 2019 at 7:48 pm

    The Chinese panel makers already have a workaround (ship from a Vietnamese port).

    Reply
  5. Robert Yorgensen says

    February 14, 2019 at 1:45 pm

    Hello Kelly – The article would suggest total import duties are in excess of 55% “Any Chinese imported cells or panels would now have 55% tariffs, in addition to antidumping/countervailing duties in place for the last few years. ” no?

    Reply
    • Kelly Pickerel says

      February 14, 2019 at 2:21 pm

      Correct.

      Reply
  6. Grady scott says

    January 22, 2019 at 9:23 am

    Trump and coal and oil interests do not want solar power period.

    Reply
    • Ryan Nance says

      March 18, 2019 at 11:15 pm

      Yeah its Trumps fault that China subsidizes all its corporations to undercut US products! You should do you homework before saying ridiculous stuff on the internet. Maybe it has something to do with making American products competitive and helping the US economy not get flooded with cheap ass Chinese solar panels, but it could be because he wants coal and oil!!

      Reply
  7. George Hahn says

    January 11, 2019 at 10:30 am

    What is the total amount of the current tariffs along with the anti dumping/countervailing duties already imposed on Chinese solar panels. Sorry to bother you with this, but I can’t seem to find and answer out there. Also are these tariffs and duties on panels alone, or are they also on inverters and racking and cabling that would be part of a solar system package?
    Thank you.

    Reply
    • Kelly Pickerel says

      January 11, 2019 at 10:38 am

      We have covered the tariffs on solar panels, inverters and steel/aluminum: https://www.solarpowerworldonline.com/tag/Section201/

      Chinese solar panels have a 25% tariff on top of the now 25% global tariff. So panels coming from China have a 50% tariff. A panel coming from Sinagpore only has a 25% tariff.

      Just recently we had a story on the inverter tariffs: https://www.solarpowerworldonline.com/2019/01/chinese-tariffs-change-solar-inverter-manufacturing/

      Reply
  8. James says

    August 17, 2018 at 7:54 pm

    Can we make enough solar array in the USA?? Why not look for the chinese to build factories here.

    Reply

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