Solar industry roiled by trade ruling that some fear could lead to tariffs
The US solar industry was roiled on Friday by a unanimous ruling in a much-watched international trade case - one that some industry leaders fear could lead to steep new tariffs on imported crystalline silicon solar cells.
The bankrupt Georgia-based solar company Suniva joined forces with Oregon-based SolarWorld to petition the US International Trade Commission for relief earlier this year, saying that the US solar industry “simply cannot survive” at a time when foreign imports of solar cells “have unexpectedly exploded and prices have collapsed.”
Solar World Americas is owned by a German fi rm and a majority of Suniva is owned by Shunfeng International Clean Energy, a Chinese company which has opposed the petition fi led by Suniva’s restructuring officer.
The ITC, after considering the petition, ruled 4- 0 Friday in favor of the two companies, fi nding that solar cells “are being imported into the United States in such increased quantities as to be a substantial cause of serious injury, or threat of serious injury, to the domestic industry.” The commission will now weigh what remedy to suggest.
After the commission proposes one, it falls to President Donald Trump and his administration to determine whether and how to implement it.
“We brought this action because the US solar manufacturing industry fi nds itself at the precipice of extinction at the hands of foreign market overcapacity,” said Suniva in a statement.”
The ITC has agreed, and now it will be in President Trump’s hands to decide whether America will continue to have the capability to manufacture this energy source.”
But Trump’s expected role is exactly where the fear lies for others in the solar industry. Trump, an ally of coal and a frequent critic of China might indeed be inclined to support some kind of trade remedy.
“The President will examine the facts and make a determination that reflects the best interests of the United States,” said White House spokeswoman Natalie Strom in a statement released after the ruling. “The US solar manufacturing sector contributes to our energy security and economic prosperity.”
The US solar industry’s main trade group has been vociferous in charging that the remedy requested by Suniva and SolarWorld would be damaging to most US solar companies, saying that the two panel makers do not represent the interest of the industry as a whole.
The association has charged that if the two companies get what they are asking for, prices for solar power will rise, demand will fall, and the industry will lose some 88,000 jobs.
That charge was partly supported by a statement from market analyst Moody’s on Friday.
“The US International Trade Commission’s ruling that an influx of low- cost foreign solar panels caused injury to the domestic panel manufacturing industry will have negative consequences on the US solar industry as a whole,” said Lesley Ritter, an assistant vice president at the fi rm, in a statement. — WP-Bloomberg