Trump says solar tariff decision coming soon, stakes huge for industry

Solarworld AG

18/01/2018 01:17

By Nichola Groom and Steve Holland 
    LOS ANGELES/WASHINGTON, Jan 17 (Reuters) - U.S. President 
Donald Trump said on Wednesday he would announce a decision soon 
on whether to slap tariffs on imported solar panels, and quipped 
that when countries dump subsidized panels in the United States, 
"Everybody goes out of business." 
    The solar industry is anxiously awaiting the decision, which 
will have wide-reaching implications for the sector. Domestic 
panel producers opposed to cheap imports would benefit from a 
tariff. But installers that have relied on the lower-cost 
hardware for their recent breakneck growth would suffer. 
    In an interview with Reuters, Trump declined to say how he 
would land on the case - which was triggered last year by a 
domestic manufacturer's trade grievance - but complained about 
the effect of imports on U.S. panel makers. 
    "You know, they dump 'em - government-subsidized, lots of 
things happening - they dump the panels, then everybody goes out 
of business," he said.  
    Asked when the decision would be announced, he said: "Pretty 
soon. Honestly, pretty soon." 
    According to a process governed by the International Trade 
Commission, Trump has until Jan. 26 to make his decision. 
    Bankrupt domestic panel producer Suniva triggered Trump's 
consideration of tariffs last year when it filed a trade case 
arguing it could not compete with cheap imports. About 95 
percent of the solar cells and panels sold in the United States 
are made abroad, with most coming from China, Malaysia and the 
Philippines, according to SPV Market Research. 
    Suniva was later joined in the case by the U.S. arm of 
German manufacturer SolarWorld AG  SWVKk.F . 
    In October, Trump received a range of options from members 
of the U.S. International Trade Commission to protect domestic 
producers, but he has broad leeway to come up with his own 
alternative or do nothing at all.  
    Suniva is seeking strong measures. 
    "A robust tariff will allow Suniva to restart its factories 
and rehire employees," Suniva spokesman Mark Paustenbach said. 
      
    JOBS AT STAKE 
    Only about 14 percent of the solar industry's 260,000 jobs 
are in manufacturing. The trade case has fueled anxiety among 
installers that make up most of the rest of the industry and 
rely on low-priced imports. 
    The installation sector's trade group, the Solar Energy 
Industries Association, has campaigned against tariffs, saying 
they would drive up the price of solar and cripple demand, 
eliminating tens of thousands of jobs and ultimately hurting the 
manufacturers that sought them in the first place. 
    "I'm staying optimistic that the business aspect of this 
will come through in the end," said George Hershman, president 
of Swinerton Renewable Energy, a privately held firm that 
constructs large-scale solar projects. 
    Hershman said Swinerton employed 2,000 full-time employees 
and up to 8,000 temporary workers, but added several of its 
projects had been placed on hold pending Trump's decision. 
    "If you add 50 percent to the cost of the job, it may not be 
economic," Hershman said.  
    Solaria Corp, a U.S. company that produces panels in both 
California and South Korea, also opposes tariffs, according to 
Chief Executive Suvi Sharma. The company said a recent $23 
million financing round took months longer than it should have 
partly because of investor jitters about the case. 
    "The best thing would be to have this whole thing go away," 
Sharma said. 
 
 (Reporting by Nichola Groom; Editing by Richard Valdmanis and 
Peter Cooney) 
 ((nichola.groom@thomsonreuters.com;)) 
 
Keywords: USA TRUMP/SOLAR