Q3 Earnings Alert! Plan early for this week’s stock reports with all key data in 1 placeSee list

Judge blocks higher White House tariffs on imported solar panels

Published 12/05/2019, 05:59 PM
© Reuters.  Judge blocks higher White House tariffs on imported solar panels
SPWRQ
-
FSLR
-

By Jonathan Stempel

(Reuters) - A U.S. judge overseeing trade issues temporarily blocked the Trump administration on Thursday from reimposing tariffs on some imported double-sided solar panels, a defeat for domestic manufacturers that caused shares of some to fall.

Judge Gary Katzmann of the U.S. Court of International Trade in Manhattan said it was in the public interest to block trade officials from enforcing their decision to eliminate an exemption for so-called bifacial solar panels from the tariffs, while opponents challenge it in court.

Katzmann's preliminary injunction is a victory for solar farm developers, including Chicago-based Invenergy Renewables LLC, that favored the exemption.

The office of U.S. Trade Representative Robert Lighthizer did not respond to requests for comment.

In Thursday trading, shares of First Solar Inc (NASDAQ:FSLR) closed down 4.5%, while SunPower Corp fell 3.9%.

The United States in January 2018 imposed duties on solar panel imports beginning at 30% and expected to drop to 15% by 2021.

It exempted bifacial panels on June 12 but yanked the exemption on Oct. 4, projecting "significant" increases in imports. Invenergy sued on Oct. 22.

"The court has adopted nearly all of our arguments," Invenergy said in a statement. "We are reviewing the order and preparing for the next steps."

Bifacial technology is a small but growing part of the solar panel market, costing more but capable of producing greater power than traditional panels.

Consumers and importers said higher tariffs would boost their costs and were unnecessary because domestic producers did not make the panels and faced no harm from imports.

Domestic producers countered that solar farm developers could use monofacial or bifacial panels, and higher tariffs were needed to protect domestic production.

In his 55-page decision, Katzmann said tariff opponents would likely show it was "arbitrary and capricious" to withdraw the exemption.

"The facts on which USTR relied to implement the withdrawal remain unknown to all but USTR," Katzmann wrote. "The public interest is served by ensuring that governmental bodies comply with the law."

The Solar Energy Industries Association on Tuesday said tariffs from 2017 to 2021 on imported solar cells and modules would cut private sector investment by $19 billion and cost 62,000 U.S. jobs through layoffs or a lack of hiring.

SEIA President Abigail Ross Hopper said the trade group would "continue to make the case that the... bifacial exclusion was a fair and reasonable solution to the problem of domestic module supply shortages."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.