The United States (U.S.) announced its plan to impose tariffs as high as 3,521 percent on solar panels imported from Southeast Asia. This action is designed to address concerns over alleged Chinese subsidies and dumping practices within the sector.
The tariffs on companies from Cambodia, Thailand, Malaysia, and Vietnam are set to be ratified at a meeting of the International Trade Commission in June. This decision comes after anti-dumping and countervailing duty investigations initiated nearly a year ago by several U.S. and other solar manufacturers. These companies have targeted “unfair practices” that were alleged to have negatively impacted the U.S. domestic solar market, particularly raising concerns over Chinese-headquartered companies operating out of Southeast Asia.
While the recent announcement followed a year-long investigation, it also comes in the wake of U.S. President Donald Trump launching aggressive trade wars through tariffs on a global scale, as reported by AFP. Trump’s tariffs have involved the White House imposing significantly high levies, only to suspend some to facilitate negotiations aimed at reducing U.S. trade imbalances.
Targeting transnational subsidies
The Commerce Department’s statement noted that the newly recommended tariffs on solar cells specifically target “transnational subsidies.”
“In the CVD investigations involving Cambodia, Malaysia, Thailand, and Vietnam, Commerce found that companies in each country were receiving subsidies from the Government of China,” the statement explained, referring to the countervailing duty probes. “These are among the first CVD investigations wherein Commerce has made an affirmative finding that companies received transnational subsidies.” The case was brought forth by Hanwha Qcells, First Solar, Convalt Energy, and others.
Read more: Trump to announce tariffs on imported semiconductors following smartphones exemption
Targeted companies
For the duties to be officially finalized, the International Trade Commission must make a final determination by early June. Among the firms targeted are Chinese companies Jinko Solar and Trina Solar. Products imported from Cambodia are projected to face duties of up to 3,521 percent, as indicated by the Commerce Department. Jinko Solar is expected to incur duties of 40 percent for exports from Malaysia and about 245 percent for goods from Vietnam. Meanwhile, Trina Solar in Thailand will see duties exceeding 375 percent, and over 200 percent for products originating from Vietnam.
If these new levies are imposed, they will be in addition to the blanket 10 percent levy that Trump has applied since early April on products entering the United States from most trading partners. In 2023, the United States imported $11.9 billion in solar cells from the countries identified in this latest action, AFP highlighted, citing official data.
