US slaps 3,521% tariff on importing Southeast Asian solar panels
What's the story
The US Commerce Department has announced plans to levy tariffs of up to 3,521% on solar panel imports from four Southeast Asian countries.
The move comes after a year-long investigation launched by many major solar equipment producers, who wanted the former Joe Biden administration to protect their US operations.
The new tariffs target firms in Cambodia, Thailand, Malaysia, and Vietnam.
Trade concerns
Tariffs are response to Chinese subsidies, market dumping
The tariffs come as a response to allegations of Chinese subsidies and selling unfairly cheap goods in the US market.
The International Trade Commission, another US government agency, is expected to make a final decision on these new tariffs by June.
The anti-dumping duties vary depending on the companies involved and the countries where their products are manufactured.
Tariff details
Companies face varying duties based on cooperation
Certain solar equipment exporters in Cambodia are facing the highest duties of 3,521% as they were perceived to be non-cooperative with the Commerce Department's investigation.
Products made by Chinese company Jinko Solar in Malaysia are facing some of the lowest duties at just over 41%.
Another China-based firm, Trina Solar, is facing tariffs of 375% for its products manufactured in Thailand.
Manufacturing shift
Southeast Asian operations to avoid US tariffs
In recent years, several Chinese companies have shifted operations to Southeast Asia to evade tariffs imposed since the start of Donald Trump's first term as US President.
The American Alliance for Solar Manufacturing welcomed the US Commerce Department's findings.
Tim Brightbill, lead counsel to the Alliance, said the decision is a "decisive victory for American manufacturing" and confirms that "Chinese-headquartered solar companies have been cheating the system."
Impact
US imported solar equipment worth billions in 2023
In 2023, the US imported nearly $12 billion worth of solar equipment from Cambodia, Vietnam, Thailand, and Malaysia.
While the newly proposed tariffs could benefit US solar panel manufacturers by shielding them from cheaper foreign competition, they may also raise costs for businesses and consumers who have enjoyed access to more affordable solar products.
The new levies would be over and above existing tariffs imposed by the Trump administration.