Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 48

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1
Chunk 48
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 state utility,
or commercial and industrial off-takers that interconnects through government owned transmission lines only use solar modules from manufacturers
included in the ALMM, and a requirement that all federal procurement of solar modules be only from cells and modules produced domestically.
However, in February 2025, the Indian government began imposing import duty tariffs of 20% each on solar modules and cells and levied
additional tax on certain commercial agricultural production, which tax included 20% on solar modules and 7.5% on solar cells. Therefore,
the aggregate impact on the import of solar modules and cells is 40% and 27.5%, respectively.

29

These examples show that established markets for PV solar development face uncertainties arising from policy, regulatory, and governmental
actions. While the expected potential of the markets we are targeting is significant, policy promulgation and market development are
especially vulnerable to governmental inertia, political instability, changing government policy and priorities, the imposition or lowering
of trade remedies and other trade barriers, geopolitical risk, fossil fuel subsidization, potentially stringent localization requirements,
and limited available infrastructure. Any negative impacts from changes in policy, regulatory and governmental actions could negatively
affect our business, reduce our net sales, profitability and/or market share, and consequently adversely affect our results of operations,
prospects, and financial condition.

Changes in the
global trade environment, including the imposition of import tariffs, could adversely affect the amount or timing of our revenues, results
of operations or cash flows.

Escalating trade tensions,
particularly between the U.S. and China, have led to increased tariffs and trade restrictions, including tariffs applicable to certain
materials and components for our products or for products used in solar energy projects more broadly, such as module supply
and availability. The U.S. has recently imposed significant new tariffs on nearly all products and components imported into the U.S.
and could propose additional tariffs or increases to those already in place. To the extent we continue to use overseas suppliers of steel
and aluminum, these tariffs could result in interruptions in the supply chain and impact costs and our gross margins. In addition, the
threat of potential tariffs can create uncertainty among our customers and slow down the rate of existing projects and projects in our
orderbook.

More specifically, in
March 2018, the U.S. imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports pursuant to Section
232 of the Trade