The United States is planning to impose exceptionally high tariffs on solar panels imported from four Southeast Asian countries — Cambodia, Thailand, Malaysia, and Vietnam. Among them, some Cambodian companies will face a staggering tariff rate of up to 3,521%.
Last year, American solar panel manufacturers urged the Biden administration to protect domestic products, alleging that Chinese companies had been relocating their factories to Southeast Asia to bypass existing U.S. tariffs. These companies exported low-cost panels to the U.S., hurting local manufacturers.
In response, the U.S. Department of Commerce has proposed the new tariffs. The final decision is expected in June by the U.S. International Trade Commission, according to a BBC report published on April 22.
These tariffs are categorized as countervailing and anti-dumping duties, varying by company and country. Cambodian companies that failed to cooperate with the U.S. investigation will face the highest tariff rate — up to 3,521%. In contrast, Chinese company Jinko Solar’s products manufactured in Malaysia will face a 41% tariff, and Trina Solar’s products made in Thailand will be subject to a 375% tariff.
Former President Donald Trump initially imposed tariffs on Chinese products, which led many Chinese solar companies to shift their manufacturing operations to Southeast Asia.
According to the U.S. Census Bureau, the country imported $12 billion worth of solar panels from these four nations in 2023. While the tariffs are expected to benefit American manufacturers by boosting local production, they may increase costs for consumers who rely on affordable solar energy solutions.
This development comes shortly after Chinese President Xi Jinping’s visit to Vietnam, Malaysia, and Cambodia, during which he called on these nations to resist what he termed U.S. “economic bullying.”