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One Disaster After Another! US Levies 25% More Tariffs On Solar Products Imported From China
- Jun 22, 2018 -

Comprehensive foreign media news, the United States last week imported 25% extra tariffs on China's solar cells and components, the United States and the world's most major economies and one of the international power is escalating.

President Donald Trump and his government have been making escalating trade wars against China over the past few months. The new tariffs will affect US $50 billion worth of Chinese products, including solar cells and components.

That is to say, in addition to the 30% tariff imposed on all imported solar cells and components by Trump in January this year, there is an additional 25% tariff.


The list of products for the new 25% import tariff is very extensive. In this regard, the Chinese Ministry of Commerce has taken a quick retaliation and announced that it will enforce the "same size and strength" trade barriers to promote the development of agricultural products, cars and energy.


Obviously, this move has a huge impact, which goes far beyond the respective clean technology industries. However, it is not clear how this new move will affect the US solar industry, considering that China accounts for only 11% of the solar cells and components imported to the United States according to the January energy trade data. On the contrary, Malaysia accounted for 31%, followed by 21% in Korea and 14% in Vietnam.


As a result, the new tariff may not be much more influential than the US tariff on all imported solar cells and modules, which has made the industry canceling $2 billion 500 million worth of projects and could lose thousands of jobs in the United States.


Another issue to consider is the direct impact of 30% of import tariffs on the solar industry. The most obvious is that several big solar manufacturers announced the establishment of new factories in the United States, trying to avoid import tariffs by creating local production facilities. Specifically, China's crystal energy sources announced in early April that it would open an American manufacturing plant in Jacksonville, Florida; First Solar, based in the United States, announced that it would open a new solar manufacturing plant in Fort Ohio, Ohio, and the Korean solar photovoltaic maker Han Hua group announced that it was building the state of Georgia. Volt component production plant.


First Solar refused to comment on whether the move would have an impact on its business, but Han Hua explained that the impact of its import into the United States' fully assembled modules came from Malaysia and South Korea, so it had little impact, that is, it would hardly be affected by the 201 trade barriers. The Han Hua Chinese factory does not serve the US market. The solar cells of the plant in Georgia are also from factories in Korea or Malaysia. Crystal energy did not respond to comment.


According to Xiaoting Wang, a solar analyst at Peng Boxin Energy Finance (BNEF), "currently, China's photovoltaic cells and components are required to pay two sets of tariffs: anti-dumping and countervailing duties, initially implemented in 2012, after a number of revisions, and a tariff of 30% under the 201 sets beginning in February 2018. Even for the lightest individual manufacturers, the total value of the two sets of tariffs is also higher than 50%. As a result, Chinese companies are delivering products to the United States through factories in Southeast Asia, which are still subject to 201 tariffs, but are exempt from tariffs on products made in China. The potential additional tariffs proposed in Clause 301 will make the already abandoned procurement channels more infeasible, but will not affect the existing shipping process.