The U.S. Court of International Trade will hear oral arguments this week in a case brought by Silfab Solar, Canadian Solar and others regarding the section 201 tariffs on solar power equipment. The implementation of those tariffs, and a similar move against washing machine imports, were the first direct moves made on trade by President Trump in 2018. The CIT case represents another set of challenges that goes alongside the WTO references brought by six countries, as well as South Korea’s appeal against the section 201 process generally, as outlined in Panjiva research of February 21.

The petition in the CIT case refers specifically to the President’s tariff decision including Canada, whereas the accompanying investigation found that Canadian supplies were not material and therefore should be excluded under U.S. law. The case is unlikely to change the ongoing use of the section 201 process though, which had unused since 2001. The legal, rather than policy, implications of the case should mean it stays below the radar of the ongoing NAFTA negotiations.

Panjiva data shows imports from Canada accounted for just 2.6% of the total in 2017, though shipments in November and December were 6.8x the level of a year earlier. That would suggest the petitioners may be looking to secure a market position on a going-forwards basis.

Chart segments U.S. imports of solar panels by country of origin (blue) and globally (orange). Source: Panjiva