THE United States confirmed steep import duties on solar products from the Chinese mainland and Taiwan late Tuesday in a decision that may inflame trade tensions between the two countries.

    Anti-dumping duties for Chinese goods were set as high as 165.04 percent as the U.S. arm of German solar manufacturer SolarWorld AG seeks to close a loophole which it said allowed Chinese producers to sidestep duties imposed in 2012.

    Taiwanese producers face anti-dumping duties as high as 27.55 percent, according to the final U.S. Department of Commerce decision, which SolarWorld said raised average duties for Chinese mainland producers but lowered them for Taiwan. Producers on the Chinese mainland face separate anti-subsidy duties.

    But the decision, which will affect companies including the mainland’s Trina Solar Ltd. and Suntech Power and Taiwan’s Motech Industries Inc., may sour the mood at annual U.S.-China trade talks in Chicago, which started Tuesday. The handling of excess capacity in the solar industry is one issue on the agenda.

    In August, China suspended imports of polysilicon, a raw material used in solar panels, in reaction to surging imports from the United States and other countries.

    The Solar Energy Industries Association, which represents both solar panel producers and installers that rely on cheap imports, said it would continue to work on a negotiated solution.

    U.S. imports of solar products from the Chinese mainland were worth US$1.5 billion in 2013, half the level of 2011, while imports from Taiwan more than doubled to US$657 million over the period, according to U.S. Department of Commerce data.

    Many solar panel installers have warned the duties will push up prices.

    “Today’s decision ... will undercut the growth of American solar jobs, hurt the American solar industry and make it more difficult for solar technology to compete against fossil fuels,” said Coalition for Affordable Solar Energy president Jigar Shah.

    The duties must still be confirmed by the U.S. International Trade Commission, which will make its final decision by Jan. 29.(SD-Agencies)