The United States has announced a significant shift in its trade policy with the imposition of tariffs on solar panels imported from Southeast Asia. Set to target companies from Cambodia, Thailand, Malaysia, and Vietnam, the new duties could reach up to 3,521 percent. However, these tariffs will require ratification by the International Trade Commission (ITC) in a meeting scheduled for June 2025.
A Move Against Alleged Unfair Trade Practices
This decision follows a year-long investigation prompted by a group of U.S. and foreign solar manufacturers who accused Southeast Asian firms of unfair trade practices. Specifically, these manufacturers alleged that companies in the region, particularly those with links to Chinese firms, were benefiting from subsidies that undermined the U.S. solar market. The tariff proposal is aimed at addressing what the U.S. Commerce Department referred to as “transnational subsidies” provided by the Chinese government to companies in these Southeast Asian countries.
In its official statement, the U.S. Department of Commerce emphasized that this investigation marked one of the first countervailing duty (CVD) cases where China’s subsidies were seen as being passed through to firms in other nations. The key focus of these probes was to investigate how these foreign companies received substantial support, including financial assistance, from the Chinese government to produce solar cells at below-market rates. This, the department argued, distorted the competitive landscape for U.S. solar manufacturers.
U.S. Solar Manufacturers Lead the Charge
The investigation was initiated by prominent solar manufacturers, including Hanwha Qcells, First Solar, and Convalt Energy. These companies are seeking to level the playing field, claiming that Chinese-backed operations in Southeast Asia have unfairly benefited from government subsidies, enabling them to flood the U.S. market with cheap solar products.
Among the companies implicated are well-known Chinese firms such as Jinko Solar and Trina Solar, both of which are facing steep duties under the proposed measures. Jinko Solar, for example, would face a 40 percent tariff on solar exports from Malaysia and an eye-watering 245 percent on products from Vietnam. Similarly, Trina Solar would be hit with a 375 percent tariff on solar panels exported from Thailand and over 200 percent on those from Vietnam.
Impact of the Tariffs on Trade Relations
The U.S. decision to impose these tariffs is part of a broader strategy initiated by former President Donald Trump, whose administration previously implemented sweeping tariffs on a wide range of imports from various countries in an effort to correct trade imbalances. In this case, the new tariffs are seen as another step in addressing what the U.S. government perceives as China’s ongoing manipulation of trade in the global solar industry.
These tariffs will add to the ongoing 10 percent levy that President Trump introduced in early April 2025, affecting most imports into the U.S. from global trading partners. For the U.S. solar industry, however, this move could mean both challenges and opportunities. In 2023, the United States imported solar cells worth $11.9 billion from the countries that are now facing tariffs, indicating the scale of the trade relationship involved.
Final Decision Pending
For these tariffs to be finalized, the International Trade Commission will need to issue a final ruling by June. If approved, the new levies could have a significant impact on both the global solar market and trade relations between the U.S. and Southeast Asia, especially in the context of U.S.-China tensions. As the ITC’s decision approaches, all eyes will be on how these developments unfold, particularly considering the far-reaching implications for international trade.