The United States has imposed sweeping new tariffs on solar panel imports from Cambodia, Vietnam, Malaysia, and Thailand, following a yearlong investigation that concluded these countries unfairly subsidized their industries and sold products below market value. The move is expected to bolster domestic solar manufacturers but could complicate renewable energy development efforts in the US.
The US Department of Commerce announced on Monday that duties as high as 3,521% will be levied on solar modules from the four Southeast Asian nations. The ruling follows a petition filed in April 2024 by the American Alliance for Solar Manufacturing Trade Committee, which includes companies such as First Solar, Hanwha Q Cells, and Mission Solar Energy LLC.
The investigation found that producers based in or tied to Chinese solar firms had shifted operations to Southeast Asia to circumvent existing US tariffs. As a result, the Commerce Department concluded that these companies benefited from unfair government subsidies and pricing practices that harmed US manufacturers.
While the tariffs aim to protect domestic production, they are likely to increase costs and disrupt supply chains for US renewable developers, who currently depend on imported components for roughly 77% of their solar module supply. According to BloombergNEF, the US imported $2.9 billion worth of solar equipment from the four countries last year.
Duties vary significantly by country and company. Cambodia, which declined to participate in the investigation, received the highest countrywide rate of 3,521%. Companies not specifically named in Vietnam could face duties up to 395.9%, while Thai imports may be taxed at rates reaching 375.2%. Malaysian imports were hit with lower countrywide tariffs of 34.4%.
Company-specific penalties include duties of about 245% on Jinko Solar’s exports from Vietnam and 40% from Malaysia. Trina Solar was assessed at 375% for Thai-made modules and over 200% for Vietnamese exports. JA Solar modules from Vietnam face duties of roughly 120%.
The US International Trade Commission is scheduled to issue a final determination in May on whether the imports pose a material threat to domestic producers. This step is necessary for the duties to be upheld permanently.
The decision marks a significant escalation in US trade enforcement in the solar sector. Similar duties were placed on Chinese solar products more than a decade ago, prompting many Chinese firms to relocate production to Southeast Asia to maintain access to the US market.
The duties are an outgrowth of trade enforcement actions taken under former President Joe Biden, continuing a policy focus shared with former President Donald Trump aimed at revitalizing domestic manufacturing. Potential beneficiaries of the new tariffs include Hanwha Q Cells and First Solar.
Tim Brightbill, co-chair of Wiley’s international trade practice and counsel to the petitioner coalition, called the decision a validation of long-held concerns. He said the outcome sends a clear message to global producers that circumventing US trade laws will not be tolerated.
