US will investigate solar cells from Ethiopia for potential tariff circumvention

The U.S. Department of Commerce is opening an investigation into whether solar cells shipped from Ethiopia are a workaround for existing tariffs on Chinese solar goods. American solar makers, including First Solar, Qcells, Silfab and Suniva, requested the probe in May, arguing that two Ethiopian manufacturers, Toyo and Origin Solar, are using Chinese-made wafers to produce cells in Ethiopia, then assembling them into modules in Ethiopia or Vietnam before shipping to the U.S. The companies say nearly 70% of these finished modules contain parts and processing already covered by long-standing anti-dumping and countervailing duties on Chinese solar products.

Imports of Ethiopian solar cells and modules didn't exist before July 2025 but hit $277 million in just the second half of that year and have kept rising in 2026. Commerce expects a preliminary decision by December 10, 2026, and a final ruling around May 10, 2027. In the meantime, U.S. Customs will keep holding these imports in a special status and apply deposit rates as if the tariffs already applied, meaning duties could later be charged retroactively back to when the investigation began.

This is the fifth such circumvention investigation into countries accused of relabeling Chinese solar components, following similar cases involving India, Indonesia and Laos. For homeowners, this doesn't change anything immediately, but it's part of a broader pattern of tariff enforcement that could affect solar panel pricing and availability over time.