In a press release on Jan. 22, Robert Lighthizer, U.S. Trade Representative, announced that based on the investigative result and suggestion of the International Trade Commission (ITC), President Donald Trump has decided to impose tariffs on imported PV cells and modules, in order to provide relief to U.S. manufacturers.
The protective tariff will be set at 30% in the first year, decreasing to 25% in the second year, 20% in the third year, and 15% in the fourth year, except PV cells less than 2.5 gigawatt which will be exempt from the tariffs.
According to the press release, China has deliberately curbed PV cell and module prices, stimulating tripling of annual PV power capacity installation during the period from 2012 through 2016, as a result of which global share of China-made PV cells had jumped to 61%, a far cry from 2005's 7%.
China accounted for near 70% of new capacities worldwide in the first half of 2017, with its global output shares of PV cells and modules topping 60% and 71%, respectively now.
In 2012 the U.S. levied antidumping and countervailing tariff, prompting Chinese manufacturers to move production lines to Taiwan.
In the wake of U.S. firms petitioning to plug the loopholes, Chinese firms further moved production lines to Malaysia, Singapore, Germany, and South Korea.
With import into the U.S. skyrocketing by 500% during 2012-2016, quotes of PV cells and modules plunged by 60%, as a result of which 25 PV firms in the U.S. went broke from 2012 through 2017 and many transplanted their production lines abroad.
Section 201 of the Trade Act of 1974 authorizes the U.S. President to provide relief to domestic players by activating protective clause, in case massive imports pose grave threat on domestic industries.
The U.S. Solar Energy Industries Association (SEIA) has expressed disappointment over President Trump's decision, alleging, in a press release on Jan. 22, that it will cost 23,000 job openings, including many manufacturing ones, and lead to cancellation or deferment of PV-related investments to the tune of several billions of U.S. dollars.
(Photo courtesy of Gage Skidmore via Flickr CC BY-SA 2.0)