Tesla echoes opposition to safeguard restrictions on Korean solar cells

2017.10.18 15:06:19 | 2017.10.18 15:06:58

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U.S. electric vehicle maker Tesla Motors, Inc. has joined the front critical of the Donald Trump administration¡¯s plan to impose emergency import restrictions on solar cells imported from South Korea and others.

The American electric automaker recently stated its opposition to a safeguard investigation by the U.S. International Trade Commission (ITC) into imported photovoltaic cells and modules.

"The safeguard restriction can have a negative impact on Tesla¡¯s production plan in the U.S.,¡± said the automaker, emphasizing that it is ¡°against any import control on fairly traded solar cells and modules.¡±

Tesla has been importing solar cells and modules needed to install solar panels after it acquired SolarCity Corp. last year in a bid to diversify its business portfolio beyond electric vehicles. The safeguard restriction could hurt Tesla¡¯s photovoltaic business due to increased importing costs. A forced price hike may help the American photovoltaic industry for a while, but it cannot resolve competitiveness concerns, Tesla noted. ¡°Financial and technology support for domestic industries is a more appropriate approach than import regulations.¡±

Earlier, Solar Energy Industries Association (SEIA), the voice of solar energy in the U.S. opposed excessive import restrictions, arguing that "trade barriers only poses an economic threat to American workers and their families.¡±

Concerns were already expressed by manufacturers in other industry sectors. U.S. carmakers said the import restrictions on foreign steel products would create a burden on U.S. producers, opposing the U.S. government¡¯s plan to import tough import restrictions on Korean steel products under the Section 232 of the Trade Expansion Act.

The tariff measures against imported steel products remain on hold after back-to-back oppositions from American businesses, U.S. President Donald Trump said during his interview with the Wall Street Journal in late July.

By Lee Jae-cheol and Minu Kim

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