The United States has declared plans to levy tariffs as high as 3,521% on solar panel imports from four Southeast Asian nations.
On Monday, the U.S. Department of Commerce announced high tariffs on solar panels and related products from Malaysia, Vietnam, Thailand, and Cambodia, citing concerns over alleged Chinese subsidies and market dumping in the industry.
The newly imposed tariffs mark the conclusion of a yearlong investigation that found that the solar manufacturers in Cambodia, Vietnam, Malaysia, and Thailand were benefiting from unfair government subsidies and selling these products in the U.S. at prices below production costs. The probe, initiated under former President Joe Biden, was requested by domestic solar manufacturers.
The proposed tariffs on companies from Cambodia, Thailand, Malaysia, and Vietnam will undergo review for ratification at the International Trade Commission meeting in June.
The tariffs will benefit domestic manufacturers while posing challenges for U.S. renewable energy developers reliant on cost-effective foreign imports. These tariffs will add to the extensive duties introduced during Donald Trump’s presidency, which have caused significant disruptions to global supply chains and markets.
Tariff rates varied considerably across countries and manufacturers. Solar cells produced in Malaysia by the Korean company Hanwha faced the lowest tariff at 14.64%. According to the Commerce Department, solar products from Cambodia are expected to face duties of up to 3,521%.
Jinko Solar’s exports from Malaysia were hit with a 40% tariff, while goods from Vietnam faced around 245% in duties. Meanwhile, Trina Solar’s products from Thailand will see tariffs exceeding 375%, with those from Vietnam subject to more than 200%.
The department’s decision prioritizes domestic manufacturing, a policy backed by both Trump and Biden, providing a competitive edge to companies such as Hanwha Q Cells and First Solar Incorporated.
If implemented, the new tariffs will be added to the existing 10% levy introduced by Trump in early April on imports from most U.S. trading partners.
Based on data from the U.S. Census Bureau, in 2023, the United States imported nearly $12 billion (£8.9 billion) worth of solar equipment from the four countries.
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