Boston, MA 06/04/2014 (wallstreetpr) – The bad news is that Trina Solar Limited (ADR) (NYSE:TSL) and its Chinese peers will face steep duties on their products in the U.S. The Chinese solar company is disappointed by the move and believes it will herald unfair trade practice.
In its preliminary findings, the U.S. Department of Commerce discovered that some manufacturers, especially from China, benefited from unfair subsidies. Therefore, the agency is moving to seal the loopholes that may have led to those unfair business practices. However, that move appears to be a thorn in the flesh of the Chinese companies. Nonetheless, the latest move by the Commerce Department comes as win for the U.S. solar companies that appear to be getting a run for their money from Chinese rivals in the U.S. market.
Tariff range
Following the preliminary findings, the Commerce Department set a range of 18.56 to 35.21 percent on certain solar products imported from China. Although the figures have been marked as preliminary tariffs, the U.S. will begin to collect the tariffs ahead of the final decision that is expected later in the year.
The decision to adjust import tariffs not only addresses one of the long-simmering trade disputes in the U.S. solar market, but also signals how far competition can take matters in the fast-growing solar panel market. The issue about unfair subsidies for the Chinese companies was brought to the attention of the U.S. trade authorities by German-based solar manufacturer SolarWorld.
Unfair accusations
Trina Solar Limited (ADR) (NYSE:TSL) believes that the allegations by SolarWorld are unfair and contrary to free and fair trade principle. Trina claims that its transactions with U.S. customers, as elsewhere around the world, have been in accordance with the widely accepted international trade practices. As such, the allegations by SolarWorld not only appear unfounded but also hurts Chinese solar business in the U.S.
However, Trina Solar Limited (ADR) (NYSE:TSL) remains focused on delivering quality products for solar energy solutions around the world. In addition to the U.S., Trina is witnessing strong demand for its products in China and Japan among other emerging global markets.
