U.S. trade officials have proposed imposing tariffs of up to 3500% on solar panels imported from certain Southeast Asian nations, following a year-long investigation into alleged unfair trade practices. This situation arose after American manufacturers charged that companies from China had been flooding the U.S. market with solar products priced below production costs, severely impacting local manufacturers.
The inquiry was initiated by notable industry players, including Korea’s Hanwha Qcells, First Solar Inc., based in Arizona, and several smaller producers, all of whom aimed to safeguard substantial investments in U.S. solar manufacturing. The American Alliance for Solar Manufacturing Trade Committee accused major Chinese manufacturers with operations in Malaysia, Cambodia, Thailand, and Vietnam of engaging in predatory pricing and benefiting from unfair subsidies.
The tariffs, which vary significantly depending on the manufacturer and country, exceed the preliminary tariffs announced earlier. For instance, Jinko Solar products from Malaysia will face 41.56% tariffs, while Trina Solar’s products from Thailand are set at 375.19%. These rates are subject to final approval from the International Trade Commission, which is expected to decide in June whether the U.S. industry has indeed been harmed by these imports.
Products from Cambodia are facing tariffs exceeding 3500% due to non-cooperation with the U.S. investigation. Tim Brightbill, a lawyer representing U.S. manufacturers, expressed confidence that these tariffs would effectively challenge the unfair practices attributed to Chinese enterprises that have reportedly hurt American solar manufacturing for an extended period.
Last year, the targeted Southeast Asian countries provided over $10 billion in solar products to the U.S., making up a significant portion of the domestic supply. However, the impending tariffs have already begun to alter the global solar trade landscape, resulting in a dramatic decline in imports from these nations while boosting shipments from other countries like Laos and Indonesia.
This development underscores the tensions in international trade relations, particularly in the renewable energy sector, as the U.S. takes a hard stance to protect its domestic industry.