Key facts
- Three U.S. solar panel makers have petitioned the Department of Commerce to investigate imports from South Korea.
- The petition alleges that South Korean producers, including Hanwha's Qcells, are using imports to evade U.S. tariffs on Chinese products.
- The petitioners are Canadian Solar, SEG, and Heliene, all of which have solar panel factories in the United States.
- The U.S. solar industry relies on imports for a significant portion of its supply chain.
- The U.S. government has implemented various tariffs and trade enforcement actions impacting the solar industry.
Three U.S. solar panel manufacturers have formally requested that U.S. trade officials investigate imports from South Korea, alleging that producers, including Hanwha's Qcells, are using these imports to circumvent existing U.S. tariffs on Chinese products. The petition was filed with the Department of Commerce on June 18 by Canadian Solar, SEG, and Heliene, all of which operate solar panel factories within the United States.
The U.S. solar industry is heavily reliant on imports, with approximately 75% of solar cells and modules being imported in 2024, according to U.S. International Trade Commission data. This reliance comes amidst a complex trade environment shaped by tariffs, foreign content restrictions, and antidumping and countervailing duty (AD/CVD) investigations. The U.S. government has implemented various tariffs, including a baseline 10% tariff introduced by President Donald Trump in April 2025, and specific tariffs on steel and aluminum, key materials in solar manufacturing. Furthermore, Section 301 tariffs on components from China now impose a 60% duty on solar energy resources.
This new petition follows previous trade enforcement actions. The Department of Commerce has previously assessed high AD/CVD tariff rates on suppliers from four Southeast Asian countries. More recently, the Alliance for American Solar Manufacturing and Trade, which includes First Solar and Qcells, filed petitions alleging illegal trade practices by manufacturers in Laos and Indonesia, with dumping margins reported as high as 249.09% for Laos and 213.96% for India. Industry analysts warn that such high tariffs could significantly disrupt the U.S. supply of solar cells, as the domestic industry produces only a fraction of the cells needed for module assembly.
In parallel, the Department of Commerce has initiated a national security investigation under Section 232 of the Trade Expansion Act into U.S. imports of polysilicon and its derivatives, a foundational material for solar photovoltaics and semiconductors. This investigation seeks public comment on issues including foreign subsidies, supply chain concentration, and the potential need for additional trade measures like tariffs or quotas to mitigate national security risks. The investigation is expected to conclude by March 28, 2026.