US Imposes Massive Tariffs Up to 3,521 Percent on Southeast Asian Solar Imports

The United States has imposed steep duties on solar imports from four Southeast Asian countries viz, Cambodia, Vietnam, Malaysia, and Thailand, in a decisive move aimed at bolstering domestic manufacturing.

According to reports, the duties, some as high as 3,521 percent, are the result of a yearlong investigation by the US Commerce Department into alleged unfair trade practices. The probe determined that manufacturers in the targeted countries were receiving government subsidies and selling solar panels below production costs, effectively undercutting American firms and disrupting market competition.

This trade action, initiated in response to a petition by the American Alliance for Solar Manufacturing Trade Committee, which represents major US solar firms including First Solar, Hanwha Q Cells, and Mission Solar Energy, has set countrywide tariff rates that vary dramatically. Cambodia faces the highest penalties after refusing to participate in the probe. Companies in Vietnam and Thailand also face massive levies, while Malaysia saw comparatively lower rates. Specific Chinese-headquartered firms like Jinko Solar, Trina Solar, and JA Solar were also named, with duties varying based on their export activities from these Southeast Asian nations.

The reports further indicate that the implications of this decision are twofold. On one hand, it delivers a long-awaited victory for American solar manufacturers who have argued that unfair pricing from foreign competitors has put domestic factories at risk. Industry advocates hailed the move as a critical step to revitalize US solar manufacturing, which has been trying to gain traction under both the Trump and Biden administrations. The Inflation Reduction Act has already attracted new investment into domestic solar panel production, and the new tariffs are expected to further support those efforts by leveling the playing field.

On the other hand, the duties are likely to create new challenges for US renewable energy developers. These developers have depended heavily on lower-cost imports to drive project economics and scale up solar deployment in line with national climate goals. In 2023 alone, the US imported nearly USD 13 billion worth of solar panels from the four affected countries, accounting for roughly 77 percent of its total solar module imports. With the new duties in place, costs for solar installations are expected to rise, potentially slowing the pace of renewable energy expansion in the near term.

While the Commerce Department’s ruling is final, the duties will only be imposed if the US International Trade Commission confirms that the imports are causing material harm or pose a threat to US producers. That decision is expected within a month. The ruling is reminiscent of a similar action taken more than a decade ago, when the US levied tariffs on Chinese solar products, prompting Chinese companies to shift operations to other countries not subject to duties.

The reports further noted that the companies like JA Solar are already accelerating global diversification plans, including a large solar manufacturing plant in Oman that is slated to begin operations by late 2025. The facility will have a capacity of 6 GW for cells and 3 GW for modules, a clear indication of the industry’s pivot to new geographies in response to evolving trade landscapes.

Indonesia, in particular, is emerging as a significant hub for foreign-owned solar manufacturing. According to reports, the country is projected to host over 20 GW of capacity by mid-2025, up from just 1 GW in 2022. However, this trend may not go unchecked.

However, industry experts have warned that nations like Indonesia, India, and Laos could become the next targets of US trade enforcement, possibly facing a new wave of duties later this year. This move signals that the era of inexpensive, tariff-free solar imports could be nearing its end.