The Obama administration is expected to weigh in to support US solar panel producers in the seven-company coalition protesting subsidies and dumping by Chinese solar manufacturers, Reuters reported. The US Commerce Department will announce preliminary countervailing or anti-subsidy duties Tuesday, followed by preliminary anti-dumping duties in mid-May. Analysts expect anti-subsidy duties of 20-30% on imports. Joe Osha of Bank of America warned that this uptick in pricing may only be temporarily beneficial to US manufacturers, and that longer-term results will likely be lower demand for US products. Chinese solar makers have already begun to shift production outside the country in an effort to head off the rules, though tariffs may target companies that have their operations, rather than production, based in China. The US Commerce Department also set large punitive tariffs on steel wheels from China on Monday, stating that Chinese producers sold products at 45-194% below fair value. The department will make final duty decisions on galvanized steel wire and optical brightening agents on Tuesday.
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