The U.S. Department of Commerce has officially initiated a country-wide investigation into solar cells and modules imported from Ethiopia, amid allegations that the nation is being utilized as a conduit to circumvent long-standing anti-dumping and countervailing duty (AD/CVD) orders against Chinese solar products.
The inquiry follows a formal petition filed in May 2026 by a coalition of eight U.S.-based solar manufacturers, including industry leaders First Solar, Qcells, and Suniva. The petitioners allege that two Ethiopia-based firms—Toyo Solar Manufacturing and Origin Solar Manufacturing—are processing Chinese-origin wafers into solar cells before assembling them into modules for the U.S. market. The filing asserts that approximately 70% of these finished goods contain components already subject to U.S. trade tariffs on Chinese merchandise.
Trade data underscores a rapid surge in import volume. According to the petition, U.S. imports of Ethiopian solar products rose from virtually zero prior to July 2025 to roughly $277 million by the end of that year, with upward momentum persisting through 2026.
Domestic manufacturers argue that this sharp increase suggests a tactical relocation of production intended to evade trade barriers recently strengthened in other Southeast Asian nations.
“Our sustained monitoring of these trade flows is delivering results, and this new investigation sends a clear signal to bad actors: we will not stand by while they repeatedly circumvent our trade laws to undercut American manufacturing,” said Tim Brightbill, lead counsel for the petitioners.
Representatives from the named companies have submitted clarifying information to the Department of Commerce, with several firms disputing the allegations and maintaining that their current supply chains are fully compliant with international trade regulations.
According to a report by Solar Power World, The Department of Commerce has projected a preliminary determination by December 10, 2026, with a final ruling expected by May 10, 2027. Should authorities confirm tariff circumvention, duties could be applied retroactively to the date the investigation was initiated.
This case represents the fifth major inquiry into tariff evasion within the solar sector, reflecting an intensifying regulatory focus on global supply chain transparency and the enforcement of trade protections against Chinese-origin components.
