- US solar producers filed a petition to impose tariffs on imports from India, Indonesia, and Laos for alleged unfair trade.
- Chinese firms are accused of shifting production to these countries to avoid existing tariffs.
- Imports from India, Indonesia, and Laos saw a fivefold surge in just one year, raising concerns over market flooding.
A group of U.S. solar panel producers requested the Commerce Department on Thursday to establish tariffs on imports from Indonesia, India, and Laos, alleging that firms in those countries are dumping low-cost products to undermine new American production facilities.
The petition represents the most recent attempt by the small U.S. solar manufacturing sector to obtain trade relief to safeguard billions in recent investments and compete with products made primarily by Chinese firms abroad.
The petition was filed by the Alliance for American Solar Manufacturing and Trade, which comprises First Solar from Tempe, Arizona, Qcells, the solar branch of Korea's Hanwha, along with private firms Talon PV and Mission Solar.
The group has previously achieved success in securing tariffs on imports from Southeast Asian nations such as Malaysia, Cambodia, Vietnam, and Thailand. Those tariffs were completed earlier this year. The petition claims that businesses are getting unfair government subsidies and are offering their goods at prices lower than the cost of production in the United States.
It states that companies owned by Chinese shifted their production from countries facing U.S. tariffs to Indonesia and Laos, and it also claims that manufacturers based in India are dumping low-priced goods into the United States.
According to the petitioners, total imports from the three countries reached $1.6 billion last year, an increase from $289 million in 2022.
"We have always said, vigorous enforcement of our trade laws is critical to the success of this industry,” Tim Brightbill, lead attorney for the petitioners, said in a statement.
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A majority of the solar panels set up in the United States are manufactured abroad. However, U.S. solar manufacturing capacity has significantly increased since the 2022 Inflation Reduction Act offered tax credits to encourage decreased dependence on Chinese-made products.
According to the Solar Energy Industries Association, panel capacity hit 50 gigawatts this year, rising from 7 GW in 2020. That remains insufficient capacity to meet the U.S. solar market demand, anticipated to install close to 43 GW of projects annually until 2030, as per SEIA.
The Commerce Department has 20 days to determine if it will start an investigation into the potential imposition of tariffs. The agency could not be reached for comment at that time. Cases involving anti-dumping and countervailing measures generally require approximately one year establishing definitive tariffs.