The U.S. Department of Commerce officially announced on April 21 (local time) tariffs on solar cells and modules from four Southeast Asian countries—Malaysia, Cambodia, Thailand, and Vietnam—marking a pivotal phase in a year-long trade dispute.
The ruling imposes anti-dumping duties ranging from 6.1% to 271.28% and countervailing duties between 14.64% and 3,403.96%. Cambodia faces over 3,500% penalties after companies refused to cooperate in investigations. Specifically, JinkoSolar products made in Malaysia incur a combined 41.56% tariff, while Trina Solar modules from Thailand face rates up to 375.19%.
Data from the U.S. Department of Commerce shows these four nations accounted for 77% of U.S. solar imports in 2023, valued at $12.9 billion, with over 80% linked to Chinese firms using “indirect production” routes.
Next, the U.S. International Trade Commission (ITC) will vote in June 2025 on whether imports cause “material injury” to domestic industries. If approved, tariffs will take effect. Affected companies may seek exemptions by proving non-Chinese raw materials or no subsidy involvement. However, industry analysts note high exemption thresholds, likely limiting eligibility.
Reactions to the tariff adjustments are mixed. Tim Brightbill, a lawyer representing U.S. manufacturers, praised high rates for ending “unfair Chinese competition” and rebuilding domestic supply chains. In contrast, the Solar Energy Industries Association (SEIA) warned of increased project costs and delayed clean energy transitions. Data reveals 1,000 solar shipments detained in 2024 due to supply chain scrutiny, while Southeast Asian exports to the U.S. have plunged over 70% year-on-year. Meanwhile, shipments from Laos and Indonesia surged.
The tariff moves stem from U.S.-China strategic rivalry and supply chain reconfiguration. Washington aims for 100% domestic solar module production by 2030 but currently meets only 15% of demand. Tariffs seek to accelerate industry repatriation and curb China’s global market dominance.
Notably, U.S. trade barriers against Chinese solar products are escalating. Since January 2025, 50% tariffs apply to Chinese-made wafers and polysilicon, with Southeast Asian adjustments further narrowing export avenues for Chinese firms. While some Chinese companies circumvent tariffs via U.S. factories, high costs and supply chain complexities persist. Analysts predict a reshaped global solar trade landscape, with Southeast Asian capacity potentially shifting to unsanctioned nations. The success of U.S. domestic firms in boosting competitiveness through subsidies remains uncertain.
