US solar panel makers seek retroactive duties on Vietnam, Thailand amid surge in imports

A group of US solar panel manufacturers has requested the Commerce Department to impose retroactive duties on imports from Vietnam and Thailand, citing a surge in shipments from these countries amid ongoing investigations into alleged unfair trade practices. The probe, initiated by the Commerce Department in May, targets silicon solar cells and panels made in Vietnam, Thailand, Malaysia, and Cambodia. The investigation focuses on accusations that these products were sold in the US at excessively low prices and benefited from subsidies from China, where many manufacturers operate factories in the region. Last year, these four Southeast Asian countries accounted for nearly 80% of US solar imports in dollar terms.

The American Alliance for Solar Manufacturing Trade Committee, representing domestic producers such as Hanwha Qcells and First Solar, filed a complaint with the Commerce Department, claiming that exports from Vietnam and Thailand surged as speculation about the trade probes spread earlier this year. The committee argues that these countries increased shipments to the US in anticipation of potential duties, with solar imports from Vietnam and Thailand rising 39% and 17%, respectively, in the second quarter of the year compared to the first quarter.

If US federal officials confirm the allegations of unfair trading practices, the investigation could lead to the imposition of high tariffs as early as July, with retroactive duties applicable 90 days before the determinations are made in early October. The potential tariffs could have significant implications, particularly for Vietnam, which risks facing the highest duties due to its status as a non-market economy in the eyes of the US. This designation often results in harsher sanctions, as domestic pricing in such economies is deemed unreliable.

According to US estimates, Vietnam’s dumping margins— the gap between domestic and export prices— are over 270%, using Indonesia as a benchmark, more than three times higher than those of Thailand. Larger dumping margins typically lead to higher tariffs if confirmed by trade officials.

The latest complaint from US manufacturers points to the significant increase in imports from Vietnam and Thailand in dollar terms, with Vietnam alone supplying $3.3 billion worth of solar panels and modules to the US in the first half of the year, accounting for 45% of all US imports, up from less than 30% last year. In April, imports from Vietnam reached a record high of over $680 million, representing more than half of the total imports for that month.

Both the Commerce Department and the International Trade Commission must find that “critical circumstances” exist for retroactive duties to be imposed. The trade ministries of Vietnam and Thailand have not responded to requests for comment on the matter.