U.S. Officials Have Taken Further Control Measures On Imported Photovoltaic Cells On The Grounds Of So-Called Unreasonable Trade.
On May 16, 2024, the United States officially announced further control measures on imported photovoltaic cells based on the so-called unfair trade practices. This decision includes three main actions: firstly, no longer excluding double-sided solar modules from the Section 201 tariff; secondly, reintroducing tariffs on solar products from Cambodia, Malaysia, Thailand, and Vietnam after June 6, 2024; thirdly, requiring all imported products to be installed within six months to reduce stockpiling and subsidizing in-country development of domestic solar panel manufacturing by supporting technology development.
The first new regulation specified by the U.S. government is its decision to no longer exempt double-sided solar modules from Section 201 tariffs. This means that all solar panels, including double-sided solar modules, will be subject to the tariff, directly increasing the cost of imported photovoltaic cells, making them less competitive compared to domestically produced solar panels. This decision has been made to further promote the localization and industrial upgrading of the U.S. photovoltaic industry.
The second newly introduced regulation focuses on levying tariffs on solar products from Cambodia, Malaysia, Thailand, and Vietnam after June 6, 2024. The United States Government believes that the four countries' production and export policies for photovoltaic products are unfair and will continue to meet its damage to the US solar panel industry. By imposing tariffs on such products, it is possible to alleviate the imbalance and create a fairer environment for the domestic production of photovoltaic cells.
The third regulation requires all imported products to be installed within six months and further supports the development of domestic photovoltaic cells by subsidizing related research. The policy aims to break the vicious circle of stockpiling imported components, thereby promoting the development of the domestic supply chain, reducing dependence on foreign photovoltaic cells, improving the competitiveness of local enterprises, and supporting the development of related technologies.
Overall, the new regulations put forward by the US government represent a challenge to domestic upstream enterprises. It will undoubtedly force these companies to adjust their strategy accordingly. However, the decision to revive the domestic solar photovoltaic industry, promote the innovation and development of the solar panel industry is still a positive step. By promoting the localization and upgrading of the photovoltaic industry through a series of measures, including progressively reducing subsidies for renewable energy, increasing export tariffs, and encouraging domestic enterprises to optimize their resource allocation, we believe that the United States will further consolidate its position as a world leader in photovoltaic energy and gradually create a healthy and sustainable regulatory environment for related industries.