Tariffs on Chinese-made wind energy towers

The advance decision comes after a coalition of U.S. tower manufacturers – Broadwind Towers, DMI Industries, Katana Summit, and Trinity Structural Towers – petitioned the Commerce Department’s International Trade Administration to impose the new tariffs. They cited production subsidies of between 14 to 26 percent that Chinese companies have received as the reason for the petition, and they want duties applied on Chinese imports equal to the same percentage. If implemented, the tariffs will only be on steel towers capable of supporting wind turbines generating in excess of 100 KW.

Commerce will make a final decision in August as to whether or not it will impose the new tariffs on wind energy towers. The tariffs on Chinese solar panels, ranging from 31 percent all the way up to 250 percent, go into effect this fall and could have a negative impact on the solar industry here in the U.S., with solar panel prices expected to rise and a slowing of new solar installations. New tariffs on Chinese-made wind energy towers could do the same for the wind energy industry as well.

Many see the decisions by President Obama’s Commerce Department as political in nature, a president seeking to align himself with U.S. businesses alleging unfair trade practices coming from China. And while some of the charges may be true, Obama has also marketed himself as an alternative-energy president and his interest in the technologies should not come as a surprise. In the long run, duties on Chinese solar and wind energy products may be just the boost that American companies need to become more competitive with producers in other countries.