When the United States in early 2012 imposed tariffs of up to 35% on solar panels imported from China, the goal was to prevent the Chinese solar panel makers from dumping their production at below cost. But the U.S. tariff left a loophole that the Chinese drove a truck through.

If a solar cell made outside of China was used in the manufacture of a solar module or panel, then the U.S. tariff did not apply. Chinese solar panel makers simply commissioned solar cell manufacturers outside China to produce the cells then ship them back to China for final assembly and duty-free shipment.

Germany’s SolarWorld, which makes solar panels in Oregon, filed a complaint about the practice with the U.S. Department of Commerce, which issued a preliminary ruling on Tuesday that slaps a duty of 35.21% on imported panels made by Suntech Power and 18.56% on panels made by Trina Solar Ltd. (NYSE: TSL). Other Chinese makers will pay a tariff of 26.89%.

The Chinese responded quickly, calling the U.S. decision “an abuse of trade remedies,” accusing the U.S. of trade protectionism and warning of an escalation in trade disputes between the two countries.

Shares of Trina Solar fell about 3.3% on Tuesday to $12.97, in a 52-week range of $5.00 to $18.77.

JinkoSolar Holdings Co. Ltd. (NYSE: JKS) also saw its shares sink, down about 4.2% to $27.02, in a 52-week range of $7.25 to $37.98.

Shares of Canadian Solar Inc. (NASDAQ: CSIQ) dropped about 2% on Tuesday and were down another 5.6% in premarket trading on Wednesday, at $24.18 in a 52-week range of $8.30 to $44.50.

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