US Imposes Tariffs on Solar Imports from Southeast Asia

The US Commerce Department has announced new round of tariffs on solar photovoltaic (PV) imports from Cambodia, Malaysia, Thailand, and Vietnam. The preliminary duties, ranging from 21.31 percent to 271.2 percent, were imposed after claims that manufacturers in these countries were undercutting American competitors by selling products at unfairly low prices.

The decision is part of an ongoing investigation prompted by major US solar manufacturers, including Hanwha Qcells and First Solar, alongside smaller producers under the American Alliance for Solar Energy Manufacturing.

The petitioners alleged that Chinese solar manufacturers, operating factories in the targeted Southeast Asian countries, were driving global price collapses and undermining billions of dollars in US solar manufacturing investments. Among the affected companies, Jinko Solar was hit with tariffs of 21.31 percent for its Malaysian products and 56.51 percent for those from Vietnam. Trina Solar faced rates of 77.85 percent for Thai products and 54.46 percent for Vietnamese products. In contrast, Hanwha Qcells avoided a dumping margin on its Malaysian products but remains subject to a previously assessed 14.72 percent subsidy rate.

This action reflects the Biden administration’s broader efforts to counter China’s dominance in clean energy manufacturing and strengthen domestic production through policies like the Inflation Reduction Act (IRA). The IRA provides incentives for US-based clean energy production, spurring plans for new solar manufacturing facilities nationwide. The administration has also raised concerns over China’s substantial investments in clean energy manufacturing capacity, which have intensified global competition and undercut American producers.

Final determinations in the trade case are expected by mid-2025, with the aim of protecting US investments in renewable energy and reducing reliance on imported solar panels, which currently constitute 80 percent of US installations. President-elect Donald Trump has criticized the IRA for its cost but has similarly advocated for imposing higher tariffs across various industries to safeguard American jobs, signaling bipartisan alignment on addressing the challenges posed by foreign competition in clean energy.