The U.S. tariff stick strikes again at photovoltaics, with tariffs on silicon wafers and polysilicon raised to 50%, effective from 2025
On December 11, 2024, local time, the Office of the United States Trade Representative (USTR) issued a statement announcing that after a four-year review by the Biden administration, the U.S. will begin to increase import tariffs on solar (5.140, 0.00, 0.00%) silicon wafers, polysilicon, and certain tungsten products imported from China starting early next year. Specifically, the tariff rate on solar polysilicon and silicon wafers will be raised to 50%. The tariff rate on certain tungsten products will be increased to 25%. These tariff adjustments will take effect on January 1, 2025. In recent years, the global photovoltaic industry has been booming, with China standing out as a leader, achieving significant accomplishments in technological innovation and occupying an important position in the global market. However, with the rise of China's photovoltaic industry, U.S. domestic photovoltaic manufacturers have felt immense competitive pressure, prompting the U.S. government to frequently wield the tariff stick against Chinese photovoltaic products, implementing a series of stringent trade barrier measures in hopes of enhancing the competitiveness of domestic producers and protecting the U.S. photovoltaic industry from the impact of foreign cheap supplies. This has not only brought unprecedented challenges to Sino-U.S. photovoltaic trade but has also had far-reaching effects on the supply chain and market structure of the global photovoltaic industry. It is understood that the U.S. tariff policy on Chinese photovoltaic products is primarily aimed at protecting its own photovoltaic industry and investing in the clean energy economy
On December 11, 2024, local time, the Office of the United States Trade Representative (USTR) issued a statement announcing that after a four-year review by the Biden administration, the U.S. will begin to increase import tariffs on solar silicon wafers, polysilicon, and certain tungsten products imported from China starting early next year.
Among them, the tariff rate on solar polysilicon and silicon wafers will be raised to 50%. The tariff rate on certain tungsten products will be raised to 25%. These tariff increases will take effect on January 1, 2025.
In recent years, the global photovoltaic industry has flourished, with China standing out not only for its significant achievements in technological innovation but also for its important position in the global market.
However, with the rise of China's photovoltaic industry, U.S. domestic photovoltaic manufacturers have felt immense competitive pressure. As a result, the U.S. government has frequently wielded the tariff stick to impose a series of stringent trade barriers on Chinese photovoltaic products, hoping to enhance the competitiveness of domestic producers and protect the U.S. photovoltaic industry from the impact of foreign cheap supplies. This has not only brought unprecedented challenges to Sino-U.S. photovoltaic trade but has also had far-reaching effects on the supply chain and market structure of the global photovoltaic industry.
It is understood that the U.S. tariff policy on Chinese photovoltaic products is mainly aimed at protecting its own photovoltaic industry and investing in the clean energy economy. In recent years, the U.S. has made significant investments in domestic clean energy technology and semiconductor manufacturing through subsidy policies such as the Inflation Reduction Act (IRA) and the CHIPS Act, aiming to promote a clean energy revolution and achieve energy independence and environmental protection.
At the end of September this year, the U.S. officially imposed a 50% "Section 301" tariff on photovoltaic cells and modules of Chinese origin. This measure not only raised the selling price of Chinese photovoltaic products in the U.S. market but also reduced their competitiveness, placing significant economic pressure on Chinese photovoltaic enterprises.
Just three months later, the U.S. expanded the scope of tariffs on Chinese photovoltaic products to include solar polysilicon, silicon wafers, and certain tungsten products. These products are important raw materials in the photovoltaic industry chain, and the increase in tariffs will directly affect the production costs and supply chain stability of Chinese photovoltaic products.
In response to the U.S. tariff increases, the Chinese Ministry of Commerce stated that it will closely monitor the impact of U.S. measures on Chinese enterprises and is prepared to take necessary actions to safeguard the legitimate rights and interests of Chinese companies. The Chinese side emphasized that there are no winners in a trade war, and that resolving trade disputes through dialogue and cooperation is the correct approach. Chinese photovoltaic enterprises are competitive in technological innovation and product quality, and have established a complete industrial chain overseas to cope with changes in the international trade environment.
Source: Sina Finance