Abstract
This paper reviews the highly politicized recent decision by the U.S. to impose large dumping and countervailing duties on solar cells and modules imported from China. Attention is devoted to discussing the case, the conflict between the Obama administration’s trade policy and environmental goals, shortcomings inherent in the investigations related to solar imports, China’s response to the allegations, the impact on downstream firms that install solar panels, and the future of U.S.–China trade relations. U.S. trade policy is sending a negative signal to the rest of the world that will only encourage retaliation and obstruct the solar sector’s development. Punitive duties are inconsistent with President Obama’s energy and export initiatives. The U.S. should refrain from transforming trade policy mistakes into energy/environmental and export policy failures.
