Higher Tariffs to be Imposed on Chinese Solar Products
The United States Department of Commerce will be imposing higher tariffs on Chinese solar products that are being imported to the U.S. market. The department is saying that Chinese companies are entitled to lower rates, but the decision to impose tariff reversed that decision.
The department conducted a review on whether these Chinese solar manufacturing firms are receiving subsidies from the government from March 2012 and November 2013. Also producers are facing anti dumping and anti subsidy rates of around 31 percent on Chinese products. the review and tariffs rates are part of an ongoing trade dispute between China and US that was started by SolarWorld AG, a German owned US based company that filed a petition that accuses the Chinese manufacturers of getting subsidies from the government them dumping them in the US market.
A senior research analysts from Roth Capital Partners said that duties are much worse than expected and overall a negative issue for Chinese module vendors addressing the US market. And since rates apply retroactively, the new rates might turn out to be liabilities for companies that are already suffering and don’t have options to improve their economics. The Department of Commerce chose against lowering tax on solar imports and keeping the stiff tariffs in place are making solar power less affordable, prevents homes, businesses and utilities in switching to clean solar energy and slow job growth.