USA raises tariffs on inexpensive Chinese solar panels
Friday, October 12, 2012
This Wednesday, the United States Department of Commerce issued a ruling to set tariffs on Chinese-made solar panels ranging from 18% to 250% for different solar panels manufacturers. China protested against the new tariffs on Thursday claiming that they make export of solar panels to the USA unprofitable.
A US-German company SolarWorld and a group of other companies complained and initiated the tariffs change. Some manufacturers claimed China's subsidies are an unfair advantage for the Chinese solar panel manufacturers, and challenged whether China's economy is a free market.
Wang Shuai, a spokesman for the Yingli solar energy company, commented that 30% tariffs are unprofitable. He claimed that in the solar industry, gross profit margins are about 10 percent. "A tax rate of 30 percent is the same as 200 percent. Both of them mean the door is closed for exporting to the United States. No one does business to lose money."
The tariffs would not go into effect until the International Trade Commission confirms the Chinese pricing hurts the U.S. solar industry.
The tariffs occur as the Chinese solar panel manufacturers have reported losses this year of hundreds of millions of dollars, according to AP.
Sources
- Wendy Koch. "U.S. seeks stiff tariffs on Chinese solar panels" — USA Today, October 11, 2012
- Joe Mcdonald (AP). "China rejects US solar tariffs as protectionism" — PhysOrg, October 11, 2012
