Solar Cells Not Exempt From US Tariffs Despite Media Reports

The U.S. Executive Branch issued an executive order late last week, exempting specific electronic items from reciprocal import tariffs applied to goods from China. Despite some media reports suggesting that solar cells are included in this exemption, the listed tariff codes do not cover solar cells, prompting clarification on the scope of the order.

The executive order specifies several Harmonized Tariff Schedule of the United States (HTSUS) codes now exempt from additional duties, including 85411000, 85412100, 85412900, 85413000, 85414910, 85414970, 85414980, 85414995, 85415100, 85415900, and 85419000. These codes, tracked by the U.S. International Trade Commission (USITC) in the HTSUS database, primarily fall under Chapter 85, which encompasses “Electrical machinery and equipment and parts thereof.” “This order aims to adjust tariff applications for specific electronic components to support industry needs,” said a U.S. trade official.

Confusion has arisen because many exempted items are classified under subsection 41 of Chapter 85, which includes “Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED).” While this subsection references photovoltaic cells, the specific codes for solar cells—8541.42.00 (solar cells assembled into modules or panels) and 8541.43.00 (solar cells not assembled into modules or panels)—are not included in the executive order’s exemptions.

The distinction is significant for the solar industry, as tariffs on solar cells remain in place, contrary to some reports. The exempted codes cover other semiconductor devices and components, but not photovoltaic cells used in solar energy applications. “We are closely monitoring these developments to ensure accurate application of tariffs and exemptions,” said an official from the USITC.

The executive order reflects ongoing efforts to refine trade policies for electronic components, balancing industry demands with economic considerations. For the solar sector, the absence of solar cell exemptions underscores the need for clarity in tariff classifications. Stakeholders are encouraged to consult the HTSUS database for precise code definitions to understand the scope of exemptions. This move highlights the complexity of tariff policies and their impact on specific industries, with the solar industry continuing to navigate existing import duties.