The US government has announced a decision to whack additional import duties of up to 35.2 per cent on Chinese-made solar panels.
The ongoing solar trade war has its roots in complaints made by a Germany headquartered manufacturer in 2011. In 2012, the Department of Commerce imposed an initial round of tariffs on solar cells from China.
The new duties will expand from just solar cells to full solar panels assembled in China.
While the ruling is preliminary, the US will start collecting the duties ahead of the final decision later this year.
Forbes contributor Tim Worstall has called the decision “one of those great moments in stupidity over trade policy”.
Given the US government is offering incentives to install solar panels; cheaper modules mean more solar bang for buck – a better return on investment for American taxpayers. Assuming the panels are of reasonable quality and the major goal is being achieved, Mr. Worstall questions the singling out of the Chinese Government.
“Let’s just assume that they really are subsidising Chinese producers. That the Chinese taxpayer is being charged so that panels will be cheaper for American consumers. The logical American reaction to this is to say thanks very much. Even, please subsidise some more and send us more panels.”
Some have also commented the imposing of high duties plays right into the hands of the fossil fuel sector – increasing solar panel prices will slow uptake and help preserve the profits of coal based power generators.
While the issue of local jobs and manufacturing is an important one, slower uptake can also translate to job losses or dampened job creation rates in other areas, such as installation – where the bulk of solar jobs are created.
The Solar Energy Industries Association (SEIA) says the U.S. Department of Commerce’s decision threatens to derail the rapid growth of the U.S. solar industry.
