US restrictions on photovoltaic imports are likely to lead to “double transmission”

It is reported that four members of the U.S. International Trade Commission have proposed three different trade remedies to Trump, including restricting the import of photovoltaic products through quotas, tariffs and licences.

According to SPV Market Research, US solar cell production once accounted for a quarter of global Car production before 2001, but since then, US domestic production has gradually declined and imports have increased due to lower prices for solar cells in Asia. Ninety-five percent of solar cell products sold in the U.S. market last year came from imports.

David Johnson, Vice-Chairman of the U.S. International Trade Commission, and Irving Williamson, a member of the Commission, have jointly proposed two remedies, quota and tariff, although they differ in number from the above-mentioned remedies. Meiredith Brodbent, a member of the committee, suggested setting import quotas and selling import licenses by public auction, and using the revenue to support Car the development of domestic enterprises.

The U.S. International Trade Commission ruled in September that a large number of cheap imports of photovoltaic cells and components had caused serious damage to the U.S. domestic industry. This ruling is based on Article 201 of the 1974 Trade Act of the United States, also known as the “201 Survey” or “Global Safeguards Survey”. The article stipulates that when the quantity of imports of a certain commodity surges and causes serious damage or threat to American industry, the President of the United States can restrict imports through tariffs, quotas and other measures to protect his own industry.

The lawsuit was filed with Car the U.S. International Trade Commission by Suniva, a photovoltaic company in southern Georgia that filed for bankruptcy in April. Another company involved in the lawsuit is the same bankrupt German photovoltaic company SolarWorld USA Branch.

Trump will ultimately decide whether to adopt trade remedies and what trade remedies to adopt.

GTM, a market research firm, said restrictions on imports of photovoltaic cells and components could have a “devastating” impact on the U.S. solar market and could result in two-thirds of solar panel installation cancellations in the next five years.

Among them, Renda Schmidtlein, chairman of the U.S. International Trade Commission, suggested that both quotas and tariffs should be adopted to restrict imports. She suggested setting a quota for imported photovoltaic cells and imposing a 10% tariff on imports within the quota, with the tariff rate decreasing to 8.5% annually over the next three years and 30% tariff on additional imports, with the tariff rate decreasing to 27% annually over the next three years. In addition, a 35% tariff was imposed on imported photovoltaic modules, and the tariff rate gradually decreased to 32% within the next three years.

As the downstream solar industry in the United States relies heavily on imported cheap solar cells, analysts believe that the ruling may lead to rising prices for solar power generation in the United States, a large number of unemployed workers, and hindered the development of the solar industry.

On October 31, the U.S. International Trade Commission proposed trade remedies to President Trump on imports of photovoltaic cells and components to restrict imports of related products. The U.S. solar industry generally believes that restricting the import of photovoltaic products is likely to lead to “double transmission” results.

According to the U.S. International Trade Commission, Malaysia is the largest importer of solar cell products in the United States, followed by South Korea, Vietnam and Thailand. Solar cell products from China account for about 8% of U.S. imports.