Trump’s tariff move sends global markets into a tailspin. (Photo: White House)
U.S. President Donald Trump’s announcement of new tariffs on imported products is not only dealing a blow to Southeast Asia’s solar industry but also expected to drive up the cost of renewable energy projects within the United States.
Countries such as Vietnam and Indonesia are concerned the steep tariffs could trigger supply chain shifts and have promptly sought negotiations with Washington. Vietnam has even proposed eliminating its own tariffs on U.S. imports and increasing purchases to avoid being caught in a full-blown trade war.
Renewables shift focus to Middle East, India amid tariff pressures
According to Bloomberg New Energy Finance (BNEF), over 80% of U.S. solar photovoltaic imports in the first half of 2024 came from Vietnam, Thailand, Cambodia, and Malaysia. Despite already being subject to anti-dumping and countervailing duties, products from these countries remain popular in the U.S. market. The newly announced tariffs are expected to further raise costs for importers.
The effects are likely to ripple through broader segments of the renewable supply chain. Essential equipment such as transformers, switchgear, and circuit breakers are already in short supply, and wind infrastructure components—like wind turbine towers, transmission lines, and related steel and parts—are heavily reliant on imports. Tariffs could pose yet another obstacle to the expansion of clean energy in the U.S.
Felix Kosasih, a Southeast Asia analyst at BNEF, warned that the new tariffs might prompt developers to pivot away from Southeast Asia and look to other regions with lower costs and fewer trade barriers, such as the Middle East.
Other experts suggest India, where tariffs are comparatively lighter, may gain short-term traction in the global renewables race. Nakul Zaveri, Partner and Co-Head of Climate Investment Strategy at LeapFrog Investments, noted that India’s surging energy demand not only sets the stage for record highs but also accelerates the adoption of non-fossil fuel sources—positioning it as a standout among emerging markets.
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U.S. reciprocal tariffs are not only crippling Southeast Asia’s solar industry but also likely to raise the cost of domestic renewable energy projects. (Image credit: Unsplash)
Vietnam offers concessions as Singapore calls for deeper alliances
Trump’s tariff strategy has sparked economic jitters and raised the specter of a global downturn, prompting nations to respond swiftly. Unlike China’s retaliatory measures, ASEAN countries have largely pursued negotiation in hopes of shielding their economies and businesses from further fallout.
Governments in Vietnam, Thailand, and Indonesia have publicly stated their intention to engage in talks with the U.S. Vietnam went further, offering to eliminate tariffs on American products entirely in exchange for reciprocal treatment. However, White House trade adviser Peter Navarro told Fox News on the 6th that even with reduced tariffs, the U.S. trade deficit with Vietnam remains around $120 billion.
Singapore, which faces a comparatively modest tariff increase, has also weighed in. Prime Minister Lawrence Wong warned via social media that the U.S. tariffs undermine the World Trade Organization (WTO) framework and, if widely emulated, could pose existential threats to smaller economies like Singapore. While ruling out retaliatory tariffs, he emphasized the need for resilience and stronger ties with like-minded partners.
Meanwhile, Malaysian Prime Minister Anwar Ibrahim said on April 4th that he held talks with leaders from Indonesia, the Philippines, Brunei, and Singapore to discuss a coordinated response. As the current ASEAN chair, Malaysia plans to bring the issue to the upcoming ASEAN Economic Ministers’ Meeting to seek a regional consensus.
LIBERATION DAY RECIPROCAL TARIFFS 🇺🇸 pic.twitter.com/ODckbUWKvO
— The White House (@WhiteHouse) April 2, 2025
Source: PV Tech, Bloomberg, Business Times, Independent
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