US slaps up to 3,521% duties on Southeast Asian solar imports
The United States has announced imposition of substantial new duties reaching up to 3,521 per cent on solar imports from four Southeast Asian nations, supporting domestic manufacturers whilst creating challenges for the nation’s renewable energy development.
The duties, announced on Monday, follow a year-long trade investigation that claims that solar manufacturers in Cambodia, Vietnam, Malaysia and Thailand were receiving unfair government subsidies and selling products to the US below production costs, as quoted by Bloomberg.
The investigation, initiated under former President Joe Biden, was requested by domestic solar manufacturers. Despite Biden’s Inflation Reduction Act spurring investment in domestic solar panel production, manufacturers expressed concern about foreign competitors selling equipment at reduced prices.
These duties will advantage domestic manufacturers but create difficulties for US renewable developers who have depended on affordable foreign supplies, adding uncertainty to a sector already affected by Washington’s policy fluctuations.
These charges will supplement existing widespread tariffs implemented by US President Donald Trump that have disrupted global supply chains and markets.
The department’s decision favours domestic manufacturing, which both Trump and Biden have supported; offering an advantage to firms like Hanwha Q Cells and First Solar Inc.
“This is a decisive victory for American manufacturing,” stated Tim Brightbill, co-chair of Wiley’s international trade practice and lead counsel for the petitioning solar companies. The investigation confirms “what we’ve long known: that Chinese-headquartered solar companies have been cheating the system, undercutting US companies and costing American workers their livelihoods,” he added.
Which country faces what?
Cambodia faces countrywide duties of 3,521 per cent after ceasing participation in the investigation. Meanwhile, Vietnamese companies face duties up to 395.9 per cent, Thailand 375.2 per cent, and Malaysia 34.4 per cent.
Specific companies received varying rates: Jinko Solar faces 245 per cent for Vietnamese exports and 40 per cent for Malaysian exports, whilst Trina Solar faces 375 per cent for Thai exports and over 200 per cent for Vietnamese exports. JA Solar modules from Vietnam could receive approximately 120 per cent.
These four countries supplied $12.9 billion worth of solar equipment to the US last year, representing 77% of total module imports, according to BloombergNEF.
The duties’ implementation depends on the US International Trade Commission’s upcoming decision regarding harm to domestic producers.
Following similar duties on Chinese imports approximately 12 years ago, Chinese manufacturers relocated to unaffected nations. This investigation began after an April petition from the American Alliance for Solar Manufacturing Trade Committee, representing companies including First Solar, Hanwha Q Cells and Mission Solar Energy LLC.
