Tariff on solar inverters

Why did Trump impose Section 301 tariffs on solar inverters?

In 2018, the Trump administration imposed Section 301 tariffs on a long list of Chinese goods that included solar inverters and AC modules after finding “China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden or restrict U.S. commerce.”

What are solar panel import tariffs?

Solar panel import tariffs are primarily intended to support the development of a new U.S.-based solar module manufacturing supply chain, which is financially backed by the Inflation Reduction Act. This act introduces a series of tax credits designed to bolster domestic manufacturers. For solar modules, the credits are as follows:

What are China's inverter tariffs?

The tariffs started at 10%, but the administration raised them to 25% in 2019. Chinese inverter manufacturers scrambled to come up with mitigation strategies to avoid being hit with cumbersome tariffs, including securing backup manufacturing facilities outside of China. See SPW’s list of global inverter manufacturing locations here.

What is the difference between Section 201 & 301 solar tariffs?

Conversely, both the Section 201 and 301 tariffs are imposed on all solar modules globally. For example, if a solar module costs $0.10 per watt, then the Section 201 tariff at 15% would add $0.015 per watt, and the Section 301 tariff at 50% would add $0.05 per watt.

What tariffs did Trump impose on solar panels?

Following lawsuits by Suniva, the Trump administration implemented two additional tariffs: Section 201 & Section 301, applying to solar modules and hundreds of other items, respectively. The Section 201 tariff imposed a 30% import tariff on all solar modules from all countries, decreasing 5% annually until its scheduled end.

How much will a tariff on solar cells increase in 2024b?

The tariff on solar cells has risen from 25% to 50%, and battery cells have seen increases up to 25%. Today, importing solar cells from China, which cost between a few cents to a nickel per watt, would see a tariff increase from $0.0125/Wdc to $0.025/Wdc with this hike. 2024b – Pending Investigation