The United States on Monday, April 21, announced plans to impose tariffs of up to 3,521 percent on solar panels imported from Southeast Asia, targeting what officials describe as unfair Chinese subsidies and dumping practices within the global solar market. The move, which still requires ratification by the International Trade Commission in June, comes after year-long investigations prompted by U.S. and other solar manufacturers.
The tariffs would affect companies operating out of Cambodia, Thailand, Malaysia, and Vietnam, countries where Chinese-headquartered solar firms are said to have shifted operations to circumvent earlier U.S. trade restrictions. The case was filed by American solar manufacturers including Hanwha Qcells, First Solar, and Convalt Energy, who accused foreign competitors of undermining the domestic market through subsidized pricing and dumping.
The Commerce Department said its investigation found that companies in each of the four countries had received illegal transnational subsidies from the Chinese government. The department described the ruling as one of the first in which an affirmative finding of transnational subsidies had been made under U.S. trade law.
Under the proposed penalties, solar products from Cambodia could face duties as high as 3,521 percent. Chinese firms Jinko Solar and Trina Solar are among the major exporters named. Jinko Solar’s goods from Malaysia would be subject to 40 percent tariffs, while those from Vietnam could face a 245 percent duty. Trina Solar’s products from Thailand would be hit with over 375 percent in tariffs, and over 200 percent for those from Vietnam.
The announcement marks a significant escalation in the U.S. government’s efforts to protect its renewable energy industries from foreign competition deemed unfair. It follows earlier moves under the Trump administration to impose broad tariffs aimed at reducing trade imbalances, including a blanket 10 percent levy on imports from most trading partners.
In 2023, the United States imported solar cells worth $11.9 billion from Cambodia, Thailand, Malaysia, and Vietnam. The outcome of the upcoming International Trade Commission ruling will determine whether the proposed duties are finalized.