The US Commerce Department recently signaled its intent to impose tariffs as high as 3,521% on solar panel imports. These tariffs specifically hit products from Cambodia, Thailand, Malaysia and Vietnam. This major step directly aims at countries accused of having gained the advantage from Chinese subsidies. They are being accused of dumping solar products in the US market at unfairly low prices.
Only a year ago, all the leading solar equipment manufacturers were calling for the US government to act. This led to the launch of an investigation into these practices. The American Alliance for Solar Manufacturing Trade Committee applauds the Commerce Department’s preliminary findings. They issued a letter last Spring calling for an investigation into these trade practices.
These new proposed tariffs would be layered on top of current levies already enacted under the Trump administration. For example, tariffs on certain Chinese products could be as high as 245% once the new duties are added. The International Trade Commission is charged with rendering a final decision on the steepness of the tariffs. It’s likely to issue its decision in June.
Those manufacturers will be treated differently depending on their level of cooperation during the investigation with the tariffs imposed. As an example, solar exporters from Cambodia were punished with the maximum duties of 3,521% for being deemed non-cooperative. In contrast, products produced by Jinko Solar in Malaysia will face the lowest possible duties – just over 41%. Trina Solar, another Chinese firm, has a decent presence in this story. Each one of its products—mostly made in Thailand—now face enormous tariffs of 375%.
What’s most striking about this announcement is the timing. It is noteworthy that this development comes just days after Chinese President Xi Jinping concluded his own tour of Vietnam, Malaysia and Cambodia. In retaliation for the US’s latest round of proposed tariffs, China announced a mind-boggling 125% tax on American goods. They too have pledged to “fight tooth and nail all the way through.”
In 2023, the United States imported close to $12 billion worth of solar equipment. This astonishing number is the net result of the addition of just four small Southeast Asian countries, according to the US Census Bureau. The sudden jump in tariffs is a turning point in trade policy. This action attempts to defend American manufacturers while navigating the challenging dynamic with other multinational trading partners.