American solar manufacturers expect the White House to indicate whether or not it plans to impose a tariff on imported solar panel materials by next week.

In August 2017, American solar panel manufacturers Suniva and SolarWorld registered an official complaintwith the United States International Trade Commission, claiming that foreign solar imports hurt American companies. The trade case, which was supported by the regulatory body, alleged cheaper imports of crystalline silicon photo voltaic cells and modules, namely those from China, were uninhibited by an undue absence of trade tariffs.

Since 2012, the U.S. has imposed tariffs on Chinese solar products, including a 31% import tax, which was a specific response to Chinese export dumping -- flooding the American market with discounted goods, which pushed domestic manufacturers to the margins. That same year, a report by the Information Technology & Innovation Foundation accused China, as well as India and Brazil, of taking part in "green mercantilism," including export dumping, currency manipulation, forced technology transfer and intellectual property theft.

 

The tariffs decreased imports from China by 45% in a year. While the price of solar has continued to drastically decrease, as it has since 2010, the price of the solar modules themselves has remained relatively flat since 2012.

In 2016, China exported $14 billion of solar equipment, a 10% decline from 2015. Chinese investment in third-country exporters, however, was a factor in the decline. Suniva and SolarWorld's suggested a tariff should be levied against solar imports across the board.

Opposition from other domestic manufacturers

But other American solar manufacturers were quick to oppose the suggestion. The next week, in late August 2017, 27 manufacturers, spearheaded by Boston-based PanelClaw, published a letter to the U.S. International Trade Commission warning the tariffs would more than double the price of solar panels in the U.S.

“The solar industry is fundamentally different from both consumer products and other durable goods,” the letter read. “If someone needs to buy tires, they can only put off the decision for so long. Few homeowners, businesses or utilities need to buy solar, although millions want to buy solar.”