The US Department of Commerce and its International Trade Administration have imposed countervailing duties on imports of utility scale wind towers manufactured in China. The tariffs range from 13.74% to 26%, depending on the company. The tariffs are preliminary and subject to a final order due in October. None of the Chinese makers trades on a US stock exchange.
The complaint was filed in December 2011 by four US tower makers, including Broadwind Energy Inc. (NASDAQ: BWEN), charging that the government of China subsidizes Chinese manufacturers to “push wind towers into the US market.” The complaint also claimed that in the 18 months preceding the filing, “loans and credit provided by state-owned Chinese banks to Chinese wind tower producers totaled $47 billion.”
The tariffs apply only to the towers themselves, not the turbine or blades. The towers cost between $300,000 and $600,000 apiece.
Paul Ausick
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