Tariffs Will Devastate US Solar Industry
On March 28, 2022, the U.S. Department of Commerce initiated an investigation for circumvention tariffs on solar products from Cambodia, Malaysia, Thailand and Vietnam.
The impact of expanded tariffs would be severe, ranging from a 50% to 250% price increase on products that represent approximately 80% of total U.S. module imports. We are already seeing chilling effects on the solar industry, including suppliers halting exports to the US. If this case proceeds, it could lead to the loss of over 70,000 American jobs in 2022 alone.
The investigation could last up to a year and if the DOC rules in favour of the petition, tariffs of up to 250% could be applied to solar cells and/or modules originating from the countries in question and applied retroactively from any date from 4 November 2021 onwards.
The decision has been widely criticised by US solar developers and the Solar Energy Industries Association, (SEIA), citing a report from research firm Wood Mackenzie, said the petition could eliminate 16GW of module supply from the US, equivalent to two-thirds of all modules installed last year.
“This investigation is based on a meritless trade case that is hammering the solar industry in real-time and diminishing our efforts as a country to tackle climate change,” said Abigail Ross Hopper, SEIA president and CEO.
Contact Your Elected Representative
Puget Sound Solar is asking our customers, friends and solar supporters to take a minute to complete an automated form which will send a letter directly to the office of your member of Congress. For this issue, the more letters they recieve, the better.
Last July we wrote about increases coming to solar products as the result of supply chain issues related to the pandemic. A new tariff will result in additional supply chain issues and costs, slowing the transition to clean energy and the fight against the Climate Crisis by making solar more expensive.
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