U.S. Customs & Tariffs on Solar Affect the Industry, Aim to Bolster U.S. Manufacturing

At a glance

• The main takeaway: Recent actions, including increased tariffs under Section 301 on solar cells and batteries, aim to support the U.S.-based solar industry and manufacturing.
• Impact on business: Certain tariffs function as a response to China’s growing influence in the solar sector, marked by panels priced below their cost of production.
• Next steps: Schedule a consultation with Aprio’s Tariffs and Customs specialists to evaluate and mitigate the impact these tariffs may have on your company.

The full story:

Numerous recent actions by the U.S. government, including extended and increased tariffs, are poised to affect the growing solar industry. For instance, the tariff on solar cells has risen from 25% to 50%, and battery cells have seen increases up to 25%. Solar panel import tariffs play a pivotal role in further shaping the industry, as solar modules are the leading source of new energy across the globe. Overall, extended and increased tariffs aim to support the development of a U.S.-based solar module manufacturing supply chain, financially backed by the Inflation Reduction Act.

As the United States reevaluates its declining manufacturing base in contrast to China’s growing influence, solar panel import tariffs remain a significant factor in shaping the industry. Since 2012, the U.S. Commerce Department has subjected all solar modules containing certain key components from China to import tariffs. In 2024, the U.S. demonstrates a commitment to this path.

Key U.S. trade policies and updates affecting solar PV

The archive below summarizes the development of trade policies concerning solar panel imports:

Trade Policy	Date	Development
AD/CVD	2012	Antidumping and Countervailing Duties (AD/CVD) Order imposed additional duties on Chinese solar cells.
AD/CVD	2014	Additional duties were placed on solar modules assembled in China and solar cells from Taiwan.
AD/CVD	2023	Department of Commerce found that certain companies in Cambodia, Malaysia, Thailand, and Vietnam circumvented the AD/CVD Order and avoided the duties on Chinese solar cells by doing minor processing in those countries. These companies are currently subject to the AD/CVD Order.
AD/CVD	2024	New AD/CVD investigations have been initiated by the Department of Commerce on solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam. Now, Customs and Border Protection (CBP) is collecting antidumping duties on solar cells and modules from these four countries unless importers can certify no circumvention. If the AD/CVD is finalized, the duty could become effective in mid-2025.
Section 201	2018	The U.S. government has imposed Section 201 tariffs (“safeguard” tariffs) on imports of crystalline solar photovoltaic (CSPV) cells and modules imported from many, but not all, countries. Some countries were excluded — Canada, Mexico, Jordan, Brazil, Cambodia, Indonesia, South Africa, and Ukraine, among others (not including Vietnam, Malaysia, and Thailand). On February 7, 2026, the Section 201 tariff is scheduled to expire.
Section 201	2024	CSPV bifacial modules are currently exempt from the Section 201 tariff. Since most modules today are bifacial, the Section 201 tariff does not cover most module imports. On May 16, 2024, however, President Biden announced that he will rescind the bifacial panel exemption. Bifacial panels will be subject to the Section 201 tariff until its expiration.
Section 301	2018	The Section 301 tariffs were placed on solar modules and related items that originate from China.
Section 301	2024	On May 14, 2024, the Biden Administration instructed the Office of the United States Trade Representative (USTR) to increase Section 301 tariffs on various Chinese products. As a result, tariffs on Chinese-originating solar cells will increase from 25% to 50%, effective August 1, 2024.
UFLPA	2018	The Uyghur Forced Labor Protection Act (UFLPA) bans any imports from the Xinjiang region of China, known for forced labor practices in solar polysilicon production. CBP is targeting solar products from China and other countries for potential UFLPA violations.

Preparing for impact of increased duties and tariffs on solar imports

To mitigate the effects of increased tariffs and duties on solar panels and cells, it’s crucial to thoroughly analyze and practice due diligence on your supply chain. This involves understanding the origin of your products, the reliability of your suppliers, and the potential risks associated with changes in trade policies.

In addition, determining whether your products are subject to the scope of AD/CVD Orders requires a detailed examination of the sourcing country, manufacturer, and specific product details. Ensuring your documentation is 100% accurate and complete is essential when dealing with AD/CVDs to avoid any penalties or delays.

The landscape of Section 301 and Section 201 tariffs is continuously evolving. Regularly monitoring policy changes and paying close attention to possible exclusion opportunities allows you to make timely adjustments to your import strategies, potentially reducing the financial impact of these tariffs.

Lastly, thoroughly screening vendors and upstream manufacturers is a critical component of compliance and risk management, particularly concerning forced labor issues and CBP enforcement. Training your team and vendors on these procedures and meticulously documenting these activities can help ensure that your supply chain remains robust and compliant with the UFLPA.

The bottom line

Increased tariffs and duties on solar imports can significantly impact your finances and supply chain planning. Understanding and navigating complex customs/import regulations is crucial. Aprio’s customs team can guide you through these challenges and keep you updated on trade policies. To learn more and discover how your business may be impacted by these tariffs, schedule a consultation with our team of Customs & Tariffs advisors.

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