Company: ALCE
Filing Date: 2025-06-06
Form Type: 10-K
Source: 0001213900-25-052242
Chunk: 336

Company: Alternus Clean Energy, Inc.
Filing Date: 2025-06-06
Form: 10-K
Item: Item 1A
Chunk 336
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, and any additional or retaliatory tariffs, to our business and financial
condition. While we do not believe that the tariffs announced by the U.S. in 2025 will have a material adverse effect upon our results
of operations, financial condition, or liquidity, the actual impact of the new tariffs is subject to a number of factors including the
effective date and duration of such tariffs, changes in the amount, scope and nature of the tariffs in the future, any countermeasures
that the target countries may take and any mitigating actions that may become available.

30

More broadly, President
Trump has directed the USDOC, USTR, and other agencies, to review and identify unfair trade practices by other countries and recommend
appropriate actions, as well as recommend modifications of AD/CVD laws to further induce compliance by foreign respondents and governments
involved in those proceedings. These directives have been issued under the America First Trade Policy and Reciprocal Trade and Tariffs
memoranda, and the effects on the global trading system can be far-reaching.

In January 2018, the
U.S. adopted a tariff on imported solar modules and cells pursuant to Section 201 of the Trade Act of 1974. The tariff was
initially set at 30%, with a gradual reduction over four years to 15%. While this tariff does not apply directly to the components
we import, it may indirectly affect us by impacting the financial viability of solar energy projects, which could in turn reduce
demand for our products. On February 4, 2022, former President Biden extended the safeguard tariff for an additional four years,
starting at a rate of 14.75% and reducing that rate each year to 14% in 2026, and directed the U.S. Trade Representative to conclude agreements
with Canada and Mexico on trade in solar products. On July 7, 2022, the U.S. and Canada entered into a non-binding memorandum
of understanding in which the U.S. agreed to suspend application of the safeguard tariff to Canadian crystalline silicon photovoltaic
cells imported as of February 1, 2022. While this tariff does not apply directly to the components we import, it may indirectly
affect us by impacting the financial viability of solar energy projects, which could in turn reduce demand for our products.

Furthermore, starting