The U.S. Commerce Department introduced maximum tariffs of 3,521% for solar panel imports from Cambodia and Thailand and Malaysia and Vietnam based on a one-year investigation requested by U.S. solar manufacturers. Under the Biden administration the probe investigated allegations of Chinese subsidy programs and Chinese companies dumping low-cost solar products into the U.S. market.
The countervailing and anti-dumping duties set by the U.S. Commerce Department differ according to specific companies and countries involved. The highest tariffs imposed by the investigation amount to 3,521% on Cambodian exporters because they did not cooperate during the investigation. Jinko Solar’s Malaysian products face duties at 41% above the baseline while Trina Solar’s Thailand-made panels are subject to 375% tariffs. The BBC News made attempts to contact the companies but received no response. The U.S. International Trade Commission must finalize the tariffs during June.
The manufacturing relocation by Chinese firms to Southeast Asia serves as part of a pattern that started during Donald Trump’s first presidential term to avoid U.S. tariffs. The American Alliance for Solar Manufacturing Trade Committee initiated the investigation and welcomed this recent decision. The American manufacturing industry won a definitive victory because Chinese-headquartered solar companies have been violating the system according to Tim Brightbill who serves as the group’s lead counsel.
According to U.S. Census Bureau data the United States purchased solar equipment worth $12 billion from these four countries during 2023. The implementation of tariffs could increase expenses for businesses as well as consumers who depend on cheap solar products. The new tariffs build on previous Trump administration policies that imposed maximum 145% levies on Chinese imports and a 10% general tariff on other countries until July. Chinese products may encounter cumulative duties that reach up to 245% because of these measures. China responded with a 125% tax on U.S. products and declared a determination to “fight to the end.”
Chinese President Xi Jinping visited Vietnam, Malaysia and Cambodia recently before the U.S. imposed its tariffs.
