US Department of Commerce Imposes Tariffs on Solar Companies for Evading China Duties

The US Department of Commerce (DOC) has imposed tariffs on several solar companies that attempted to evade existing import duties on Chinese goods by completing their products in Southeast Asian countries. The companies, including subsidiaries of Chinese firms BYD, Trina Solar, Vina Solar, and Canadian Solar, were found to be circumventing US tariffs on Chinese solar cells and panels by conducting minor processing in Cambodia, Malaysia, Thailand, and Vietnam. The tariffs will take effect in June 2024, giving US solar importers time to adjust their supply chains. The move is seen as a boost for US solar manufacturers, who have struggled to compete with Chinese rivals and are receiving investment through President Biden's Inflation Reduction Act. The use of forced labor from Uyghurs and other persecuted ethnic minorities in China has also raised concerns in the solar industry.