US sets tariffs of up to 3,521% on South East Asia solar panels

The United States has announced that it will impose extremely high tariffs on solar panels imported from four countries in South East Asia. This decision comes after a year-long investigation that was initiated when several major solar equipment manufacturers in the US requested the government to take action to protect their domestic operations. The countries affected by these proposed tariffs are Cambodia, Thailand, Malaysia, and Vietnam. The US Commerce Department's investigation found that these countries were allegedly receiving subsidies from China and were dumping solar panels at unfairly low prices in the US market. The International Trade Commission, another US government agency, is expected to make a final decision regarding these tariffs in June. The tariffs, known as countervailing and anti-dumping duties, will vary depending on the specific companies and the countries where their products are manufactured. For instance, some solar panel exporters in Cambodia may face the highest tariffs of 3,521% due to their perceived lack of cooperation with the Commerce Department's investigation. In contrast, products made in Malaysia by the Chinese manufacturer Jinko Solar will face much lower tariffs of just over 41%. Another Chinese company, Trina Solar, will be subject to tariffs of 375% for the solar panels it produces in Thailand. Neither of these companies has responded to requests for comments from the media. In recent years, many Chinese firms have relocated their operations to South East Asia in an effort to avoid the tariffs that were imposed during the first term of President Donald Trump. The findings of the US Commerce Department have been welcomed by the American Alliance for Solar Manufacturing Trade Committee, a group of manufacturers that had urged the US government to conduct the investigation. Tim Brightbill, the lead counsel for the Alliance, stated, 'This is a decisive victory for American manufacturing and confirms what we've long known: that Chinese-headquartered solar companies have been cheating the system. ' In 2023, the US imported nearly $12 billion worth of solar equipment from these four countries, according to figures from the US Census Bureau. While the proposed tariffs are likely to benefit US solar panel manufacturers, they may also lead to increased costs for businesses and consumers who have enjoyed the availability of cheaper solar products. These new tariffs will be in addition to other tariffs that were already implemented by the Trump administration. The announcement of these tariffs came just days after Chinese President Xi Jinping completed a visit to Vietnam, Malaysia, and Cambodia, which aimed to strengthen ties with these nations and encourage them to resist what he referred to as 'unilateral bullying' by the US. Trump has already imposed tariffs of up to 145% on imports from China, and other countries are currently facing a blanket US tariff of 10% until July. The Trump administration indicated that when the new tariffs are combined with existing ones, the total tariffs on some Chinese goods could reach as high as 245%. In retaliation, China has imposed a 125% tax on US products and has vowed to 'fight to the end.