Ontario solar panel makers fight Trump’s import duties

U.S. President Donald Trump’s decision to hit imports of Canadian solar energy modules with staggering tariffs, starting this month, has sparked another court battle over the extent of his powers to push through his America First agenda.

Three Ontario-based manufacturing companies are suing the U.S. government in the U.S. Court of International Trade over a Trump presidential proclamation that began imposing 30-per-cent tariffs on imports of their products as of Feb. 7.

Silfab Solar Inc. of Mississauga, Heliene Inc. of Sault Ste. Marie and the U.S. subsidiary of Canadian Solar Inc. of Guelph jointly argue that Trump has overstepped his authority under U.S. law in several ways.

For one thing, they say Trump ignored the position of the U.S. International Trade Commission, a quasi-judicial body that would be required to recommend global tariffs on imports of solar cells and modules — mainly from Asia.

They also claim Trump disregarded an exemption for the Canadian companies, under the North American Free Trade Agreement, because they haven’t caused significant harm to the few remaining American manufacturers.

They argue that U.S. law bars the president “from taking safeguard actions against a NAFTA country in this circumstance.”

The Trump administration filed its defence late Tuesday.

In court documents made available to the public, it said the argument that Trump is statutorily precluded from establishing safeguards because he did not receive an official institutional remedy recommendation from the ITC doesn’t place his determination of serious injury into regulatory limbo.

“The president determined that Canadian goods met these criteria and should not be excluded from the safeguard measure, and the NAFTA Implementation Act makes clear that the president is the sole arbiter in making such determinations,” the court documents read.