Solar Industry Faces Uncertainty as New Antidumping Tariffs Loom

Solar Industry Faces Uncertainty as New Antidumping Tariffs Loom

The solar industry is bracing itself for potential disruptions as new antidumping and countervailing duty (AD/CVD) tariffs could be enforced in the United States as early as April 25, according to a recent industry note from Philip Shen, managing director at Roth Capital Partners.


These tariffs, aimed at addressing the issue of products evading import duties by being dumped in other countries before reaching the U.S., could significantly impact the solar supply chain. In a previous AD/CVD proceeding, countries like Vietnam, Cambodia, Thailand, and Malaysia were implicated for allegedly harboring such dumped products from China, which accounted for about 80% of the U.S. supply of solar components.


The potential tariffs, ranging from 50% to 250% of the cost of shipped goods, have historically led to project delays and cancellations, creating a climate of risk and uncertainty in the market. In fact, around 20% of utility-scale solar capacity faced disruptions in the first half of 2022 due to the looming threat of tariffs.


President Biden had previously placed a two-year pause on new solar AD/CVD tariffs, but this pause is set to expire soon, adding to the industry’s concerns. The precise impact of these new tariffs remains unclear, with Roth noting that it’s “difficult to gauge” their potential magnitude.


Furthermore, there are speculations that India may join the four Southeastern Asian nations in this round of AD/CVD investigation, further complicating the landscape for solar industry stakeholders.


The timing of these potential tariffs is significant, as they could coincide with the heat of election season, leading petitioners to push for AD/CVD preliminary decisions sooner rather than later.


As the industry awaits further developments, stakeholders are urged to closely monitor regulatory updates and prepare contingency plans to navigate potential disruptions in the solar market.