trade war

With Narendra Modi’s government stunning pollsters with another huge win, the solar industry expects renewable power momentum to be maintained with steps including anti-dumping duty on solar module imports, a national policy for rooftop solar and an emphasis on easing private-sector participation in the power sector.

With the deadline set by the Trump administration for avoiding a rise in further penalties on Chinese imports having passed without resolution last night, the Ministry of Commerce in Beijing reportedly warned of countermeasures, a threat which will raise fears among members of the Norwegian firm’s U.S. workforce.

Latest tirade may simply be a crude bid to up the ante with a high-profile Chinese deputation due to visit the U.S. in the latest round of trade talks this week but its timing is worrying for the Chinese solar companies struggling under huge debts.

Norway-headquartered REC Silicon has revealed plans to halt operations at its Moses Lake facility in the U.S. in 17 days’ time. The company says it has taken the decision to maintain liquidity for its semiconductor business with American workers set to pay the price for President Trump’s trade war with China.

There are indications the Trump administration may be closing in on a deal with Chinese authorities but, for now, the trade war goes on.

U.S. President Donald Trump has asked trade officials to consider increasing import duties from 10% to 25% on a list of products from China, including inverters, AC modules and non-lithium batteries.

India is currently the second largest market in the world for PV module demand. With China’s domestic demand frozen since the 31/5 notification, the country’s total module demand in 2018 will likely only achieve 32-34 GW. This will allow India, which may surpass 10 GW in annual demand, to reach 13% of global PV demand this year. As a result, the future of India’s trade war has become an influential factor in the global PV industry.

The proposed safeguard tariffs on imports from China and Malaysia are expected to generate a number of painful short-term impacts. Overall they are not expected to change much in the market, however, says TrendForce. What will have a bigger effect is the EU’s final MIP decision, due in September.

GTM Research says the 10% tariffs that the Trump Administration is calling for are “significant”, and some companies and sectors will be affected more than others.

As the trade war escalates, PV inverters, solar panels with attached microinverters and battery storage products other than those which utilize lithium-ion chemistry, may be the latest victims.