The US Commerce Department has announced plans to introduce punitive tariffs of up to 3,521% on solar panel imports from Cambodia, Malaysia, Thailand and Vietnam.
Renewable energy targeted
In 2023, the US imported nearly US$12 billion worth of solar products from the four countries, according to the US Census Bureau.
The new levies will add to existing tariffs imposed during Donald Trump's administration and will further elevate costs for American solar developers and consumers, setting back progress towards net zero as renewable energy sources become pricier.
The US government has alleged unfair trade practices, saying that these countries are receiving Chinese subsidies and that Chinese-headquartered firms operating in the region are engaging in dumping practices via these regional manufacturing bases.
The announcement follows a year-long investigation triggered by complaints from US solar manufacturers, who accused Chinese firms of circumventing earlier tariffs by relocating production to South East Asia.
The proposed duties are a mix of anti-dumping and countervailing measures and will vary by company and country of origin.
Cambodian exporters face the steepest duties, with some companies incurring the full 3,521% levy due to non-cooperation during the investigation.
Chinese manufacturer Jinko Solar will be subject to duties of just over 41% on Malaysian-made products, while Trina Solar faces a 375% tariff on its Thailand operations.
Final ruling in June
The International Trade Commission is expected to deliver a final ruling in June, which will determine whether the tariffs are formally enacted.
The American Alliance for Solar Manufacturing Trade Committee welcomed the findings, describing them as a “decisive victory for American manufacturing”.
It’s unclear, however, what domestic sources of production are in place to take advantage of the demand for these products in the near term.
The announcement coincided with Chinese President Xi Jinping’s diplomatic tour of Vietnam, Malaysia and Cambodia, which is aimed at strengthening regional ties during a time of escalating trade tensions.