US Imposes Up to 3,521% Tariffs on South East Asia Solar Panel Imports
In a major escalation of trade tensions, the US Commerce Department has announced punitive tariffs of up to 3,521% on solar panel imports from four South East Asian nations—Cambodia, Thailand, Malaysia, and Vietnam.
The decision follows a year-long investigation into allegations that Chinese-backed companies had been dumping underpriced solar products into the US market through operations in these countries. The new levies, described as countervailing and anti-dumping duties, are designed to protect American solar manufacturers from what officials called unfair competition.
“This is a decisive victory for American manufacturing,” said Tim Brightbill, counsel for the American Alliance for Solar Manufacturing Trade Committee.
Who’s Affected and How?
The tariff rates vary by company and country, based on their cooperation with the investigation and the degree of subsidy or price dumping uncovered:
- Cambodian exporters face the steepest penalties, up to 3,521%, due to non-cooperation.
- Trina Solar, a China-based manufacturer operating in Thailand, faces duties of 375%.
- Jinko Solar, which makes products in Malaysia, is subjected to tariffs of just over 41%.
The final ruling by the International Trade Commission (ITC) is expected in June 2025.
Economic Impact and Industry Response
The tariffs target roughly $12 billion worth of solar equipment imported into the US from the four countries in 2023. While the move is expected to boost domestic solar production, it also raises concerns over rising costs for US businesses and consumers who rely on cheaper, imported solar products.
Critics warn that this could slow the expansion of clean energy projects, especially amid growing efforts to combat climate change.
Political Backdrop and China’s Reaction
The move adds fresh fuel to the ongoing US-China trade tensions, which began under former President Donald Trump and have continued through his second term.
The announcement came just days after Chinese President Xi Jinping’s tour of Malaysia, Cambodia, and Vietnam—seen by analysts as an effort to reinforce regional ties and counteract US influence.
Trump’s administration has already imposed tariffs of up to 145% on direct Chinese imports, with combined levies on some products now potentially exceeding 245%. In retaliation, China imposed a 125% tax on select US goods.
What’s Next?
The new tariffs mark a strategic pivot in US trade enforcement, focusing on supply chain relocation tactics used by Chinese firms to circumvent prior trade barriers.
As the ITC prepares its final ruling, solar manufacturers, importers, and global partners await further clarity on what could be a transformational moment in the renewable energy supply chain.
