US Solar Project Deals Face Retroactive Tariff Risk During Appeal
A federal appeal over a voided tariff moratorium could impose major retroactive duties on solar modules, creating a critical risk allocation issue for project contracts, M&A, and financing.
A U.S. Court of International Trade (CIT) decision that struck down the Biden administration's two-year suspension of certain solar tariffs has created significant uncertainty for the renewables industry. The ruling, which is now being challenged at the U.S. Court of Appeals for the Federal Circuit, could lead to the imposition of substantial retroactive antidumping and countervailing duties on solar products imported from Southeast Asia between 2022 and 2024. Although the federal government has withdrawn from the appeal, industry groups are pressing on, and collection of the duties remains stayed.
Sophisticated counsel and clients must now treat the potential liability as a concrete commercial risk. The key question has become which party—importer, developer, contractor, supplier, or owner—is contractually responsible for these unforeseen costs. This contingent liability directly impacts M&A due diligence, project valuations, representations and warranties, and indemnity provisions. Lenders and investors must also re-evaluate cash flow projections and sponsor support obligations. The primary development to watch is the Federal Circuit's decision in Auxin Solar Inc. v. United States.