U.S. regulators plan probe into solar tariff compliance in Asian factories
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Chinese solar panel makers plunge sharply before recovering, after the U.S. Commerce Department reportedly will investigate whether they are evading tariffs by sending components to other Asian countries for assembly before shipping finished products to the U.S.
JinkoSolar (NYSE:JKS
+0.6%), Canadian Solar (NASDAQ:CSIQ
-0.6%) and Daqo New Energy (DQ
+0.8%) fell as much as 7% before rebounding to roughly breakeven; U.S.-based firms First Solar (NASDAQ:FSLR
+5.9%) and Maxeon Solar Technologies (MAXN
+8.1%) are racing higher on the news.
Other relevant tickers include NYSEARCA:TAN, SPWR, ENPH, SEDG, SOL, ARRY, SHLS
The probe will focus on factories in Cambodia, Malaysia, Thailand and Vietnam, Bloomberg reports, citing a statement from the Coalition for a Prosperous America, a trade group that supports U.S. manufacturing.
The company that requested the probe, Auxin Solar, also says the Commerce Department will launch an investigation.
A probe could upend the U.S. solar sector, which depends heavily on Asian panels, as some companies that build solar farms have warned that simply opening a probe will drive up prices and potentially expose importers to retroactive duties.
First Solar warned recently that supply chain problems and rising costs would hurt earnings this year.