A group of U.S. solar panel manufacturers has called on the Commerce Department to impose tariffs on imports from Indonesia, India, and Laos. The manufacturers allege that these countries are saturating the market with low-cost goods.

What Happened: The group, known as the Alliance for American Solar Manufacturing and Trade, which includes First Solar ( FSLR ) , Qcells, the solar division of Hanwha from Korea, Talon PV and Mission Solar, accuses these countries of selling solar cells below production cost in the U.S. market.

The petition also alleges that Chinese-owned firms have relocated production to Indonesia and Laos to evade U.S. tariffs and accuses Indian manufacturers of similar practices.

Check out the current price of FSLR stock here.

The group has previously succeeded in securing tariffs on imports from Southeast Asia, including Malaysia, Cambodia, Vietnam and Thailand. The petition claims that imports from the three nations under scrutiny increased from $289 million in 2022 to $1.6 billion last year.

“We have always said, vigorous enforcement of our trade laws is critical to the success of this industry," said Tim Brightbill, lead attorney for the petitioners.

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Why It Matters: U.S. solar manufacturing capacity has expanded notably since the 2022 Inflation Reduction Act introduced tax credits to encourage reduced dependence on Chinese-made products. However, the current production levels still fall short of meeting the overall demand of the U.S. solar market.

Earlier in July, President Donald Trump‘s ‘One Big Beautiful Bill’ was expected to impact the renewable energy sector. However, the impact on key players was predicted to be less severe than initially feared.

Notably, Chinese solar companies are facing growing challenges in the U.S. due to rising anti-China sentiment and stricter regulations. Before that, in May, the security of U.S. solar companies was brought into focus as Chinese polysilicon communication devices were found in critical renewable energy infrastructure, sparking national security concerns.

A newly signed tax and spending bill under President Trump further tightens restrictions on Chinese involvement in the American energy sector, alongside a Section 232 investigation into Chinese polysilicon.

Despite these challenges, the U.S. solar industry has continued to grow, with the Commerce Department expected to decide on whether to initiate an investigation into imposing tariffs within 20 days.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.