US to probe whether Chinese companies skirted solar tariffs

The US is launching an investigation into whether Chinese solar equipment manufacturers are evading tariffs by sending components to other Asian nations for assembly before exporting the finished products.

“We see severe implications for the US solar industry,” Jeffrey Osborne, an analyst at Cowen & Co, said in a note. “There is limited domestic supply to offset the supply loss.” Some solar advocacy groups warn the inquiry could drive up prices and undermine President Joe Biden’s action on climate change by slowing the pace of clean energy installations.

“This will boomerang on itself and hurt the US’s own interests,” he said during a regular press conference on Tuesday. Some solar manufacturing advocates have argued that a combination of tough trade enforcement and tax incentives are needed to help bolster the production of clean-energy equipment inside the US. They hailed the department’s decision.

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