U.S. to imposes record-high tariffs on solar imports from Southeast Asia

U.S. imposes record-high tariffs to curb Chinese solar exports via Southeast Asia. (Photo: iStock)

The U.S. has announced steep anti-dumping and countervailing duties on solar products from four Southeast Asian countries.  Cambodia faces the highest tariffs, which exceed 3,500 percent and are considered among the most significant increases in history. Thailand and Vietnam are also subject to tariffs that surpass 800 percent.

These new rates, combined with previous "reciprocal tariffs" imposed under the Trump administration, raise further barriers for ASEAN solar manufacturers seeking to export to the U.S.

Malaysia hit least as tariff rates differ

The Department of Commerce initiated the anti-dumping and anti-subsidy (AD/CVD) investigation following complaints from U.S. solar manufacturers, targeting crystalline silicon photovoltaic cells and modules from Cambodia, Malaysia, Vietnam, and Thailand.

The investigation concluded that unfair trade practices, including improper subsidies and dumping, had occurred, resulting in country- and company-specific tariff hikes.

Nearly a year after the case was filed, the final tariff determinations came out significantly higher than anticipated. Some Cambodian manufacturers, such as Hounen Solar and Solar Long PV Tech Cambodia, did not cooperate with the investigation, leading to the highest cumulative duty of 3,521.14%.

In Vietnam, unnamed solar companies will face a tariff of 395.85%, while Thai manufacturers are looking at additional duties of at least 375.19%. Malaysia is subject to lower increases, with unnamed exporters facing a 34.41% hike. Notably, Jinko Solar’s exports from Vietnam are now subject to a 244.57% tariff, and Trina Solar’s exports from Thailand face a 375.19% duty.

(Source: U.S. Commerce Department)

Chinese supply chains under fire as solar duties soar

Tim Brightbill, lead counsel for the petitioner group of U.S. solar manufacturers, called the decision a major win for American industry. He described more-than-3,400% tariffs as among the highest he has ever seen.

Brightbill argued that Chinese solar companies were “cheating” by rerouting their supply chains through Southeast Asia to avoid U.S. trade restrictions, undermining U.S. businesses and costing American jobs.

BloombergNEF estimates that solar exports from the four Southeast Asian countries to the U.S. reached $12.9 billion in 2024, accounting for 77% of total U.S. solar module imports.

With the Commerce Department’s affirmative findings in place, the case now moves to the International Trade Commission (ITC), which is expected to vote on final tariff measures by June 2.

Source: Reuters, ITA, PV Magazine, Bloomberg