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Solar Tariff Fight May Have Far-Reaching Effects

Solar installers argue that the climate change benefits of solar power generation should be considered alongside any unfair trade practices of Chinese solar manufacturers. Experts think success with this argument would inevitably “open the door to a thousand other requests.”

By Joe Deaux & Jennifer A. Dlouhy | June 07, 2022 at 07:27 PM
A contractor installs a solar panel on the roof of a new home in Sacramento, California.

For decades, American steelmakers have enjoyed a reliable shield against foreign competitors: U.S. trade policy. Now, they say, that protection is under threat from the solar industry.

Solar developers are pushing the Biden administration to scrap a probe into whether Chinese solar-panel makers are evading tariffs. And they’re supporting that stance with a novel argument: The administration should consider how the investigation is undermining the global fight against climate change.

This reasoning strikes fear into American steel. The United States has long set duties to combat unfair trade practices based on a narrow set of criteria centered around competition, subsidies, and pricing. Any new criterion risks making it harder for U.S. industrial businesses to win new duties in future disputes.

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