A tariff "big stick" of up to 271% swings towards photovoltaics! The United States plans to take action against solar imports from Southeast Asia

According to the Zhitong Finance APP, the U.S. Department of Commerce preliminarily ruled on Friday Eastern Time that solar products imported from Southeast Asia are being sold in the U.S. at unfairly low prices below production costs, proposing tariffs of up to 271% to offset this practice. This ruling marks another victory for U.S. solar panel manufacturers, who argue that these cheap imported products harm their businesses and undermine government investments aimed at nurturing the domestic supply chain. The current issue revolves around the import of crystalline silicon photovoltaic cells (and the components made from them) from Cambodia, Malaysia, Thailand, and Vietnam, which currently supply most of the solar cells and components in the U.S. Just two months ago, the U.S. Department of Commerce released preliminary results of another independent but related investigation, indicating that solar products imported from Southeast Asia unfairly benefit from government assistance. The U.S. investigation was triggered by a petition from the American Alliance for Solar Manufacturing Trade Committee in April, which represents companies including First Solar (FSLR.US), Hanwha Qcells USA Inc., and Mission Solar Energy LLC. Following the announcement, First Solar's stock price rose by 3.8%, while JinkoSolar's American Depositary Shares fell by 2.9%. As of the time of writing, First Solar was down 0.14% in after-hours trading. These investigations are the latest efforts by U.S. manufacturers to combat overseas competitors. About 12 years ago, after the U.S. imposed similar tariffs on solar products imported from China, Chinese manufacturers responded by establishing factories in other Asian countries that were not affected by tariffs. Tim Brightbill, a partner at Wiley Rein and chief attorney for the petitioners, stated in an email, "With these preliminary tariffs, we are one step closer to resolving years of harmful unfair trade and protecting billions of dollars in investments in the new U.S. solar manufacturing industry and supply chain." He added, "These initial rates align with our expectations of market conditions and how these four countries engage in unfair trade practices that undermine U.S. manufacturing and jobs." Meanwhile, this has drawn opposition from some foreign manufacturers and domestic renewable energy developers, who argue that the tariffs give an unfair advantage to large existing panel manufacturers operating in the U.S. while increasing the costs of solar power projects. According to Friday's action, goods imported from Cambodia face a cash deposit rate of 117.12%. For Malaysia, the preliminary assessment rates range from 17.84% for Jinko Solar Technology Sdn. to 81.24% for other suppliers. Hanwha Q Cells Malaysia Ltd. was preliminarily assessed as having no dumping margin, resulting in an initial cash deposit rate of 0% Products imported from Vietnamese exporters such as JA Solar Vietnam Co., Jinko Solar (Vietnam) Industrial Co., Trina Solar Development Co., and Boviet Solar Technology Co. face a cash deposit rate between 53.19% and 56.4%. Vietnamese exporters not designated by the U.S. Department of Commerce in Friday's action are required to pay a tariff of 271.28%. The final decisions of the two trade investigations are expected to be made in April next year, and the preliminary assessed tariffs may be adjusted upward, downward, or completely rejected based on the investigation results