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The U.S. government plans to slap tariffs of up to 250 percent on Chinese solar panels and cells in response to a trade complaint by

The steep duties announced Thursday are a big victory for SolarWorld, which employs 1,000 in Hillsboro. A coalition of companies led by SolarWorld contends that China's government illegally subsidizes Chinese companies that sell panels and solar cells in the United States at unfair prices.

Shares in U.S. solar companies rose on the news.

jumped 7 percent and

increased 11 percent. The Commerce announcement came after trading had closed in Frankfurt, where SolarWorld's German parent company is listed.

In the preliminary decision, the

announced that Chinese solar companies will face duties of as much as 249.96 percent for dumping products in the U.S. market. Duties will be retroactive 90 days, because Commerce investigators determined that Chinese companies sent a surge of cheap panels into the United States, trying to beat the tariffs.

"This is a bellwether case," said Ben Santarris, a spokesman for SolarWorld Americas. "It underscores the importance of domestic manufacturing to the U.S. economy, and will help determine whether the country will be a global competitor in green technologies or outsource them to the Chinese."

The Commerce Department singled out two companies that it investigated,

and

, for tariffs of 31 percent. Trina and Suntech are two of SolarWorld's largest competitors.

Other companies that applied for separate tariffs may also get the 31 percent rate. But Chinese state-owned enterprises, and companies that didn't apply for a rate, will face the duty of almost 250 percent.

The anti-dumping tariffs come on top of single-digit duties assessed earlier, when the Commerce Department ruled on Chinese subsidies.

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The case has split the U.S. solar industry, as companies that buy and install cheap solar panels from China oppose SolarWorld's call for tariffs. U.S. companies that export solar raw material to China also oppose the duties, fearing that Beijing will respond by slapping tariffs on their products.

A coalition of companies opposing the duties released a statement Thursday saying the duties would hurt U.S. workers and slow adoption of solar energy.

"This decision will increase solar electricity prices in the U.S. precisely at the moment solar power is becoming competitive with fossil fuel generated electricity,” said Jigar Shah, president of the

in a news release.

But the coalition led by SolarWorld issued a statement denying that the Commerce Department decision will disrupt solar growth in the United States. Members of the

say unfair trade practices by China undermine companies that need market incentives to improve solar technology so they can drive down prices.

U.S. Sen. Ron Wyden, D-Ore., who has backed SolarWorld in the trade conflict, described the Commerce Department decision Thursday not as a victory for the company and a loss for China, but as a win for a rules-based system of international trade.

"There's a choice between our vision, which is to produce the best products at a competitive price, so that it's innovation that really drives global commerce, or a vision that really puts the premium on who’s the best at skirting the rules," Wyden said. "This is good news for Oregon workers and Oregon's vision of a rules-based trading system."

SolarWorld USA President Gordon Brinser said he appreciated the Commerce decision. “Commerce today put importers and purchasers on notice about the consequences of importing illegally subsidized and dumped products from China," Brinser said in a news release.

Commerce Department officials are expected to announce their final determinations on dumping and subsidies on Oct. 1.

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