New tariffs have been imposed on solar cells from four Southeast Asian nations that have been significant contributors to the U.S. market, with increases reaching as high as 3,521 percent.
The affected countries—Cambodia, Malaysia, Thailand, and Vietnam—were responsible for over 75% of total solar module imports in the previous year, according to Bloomberg. According to the Wall Street Journal, these tariffs render the products essentially “unmarketable” in the United States.
These tariffs render the products essentially “unmarketable.”
This regulatory action follows extensive investigations by the Commerce Department into whether Chinese manufacturers were routing products through Southeast Asia to evade tariffs and maintain lower pricing. The decision further escalates the ongoing trade conflict initiated by Donald Trump with China, which recently saw global markets react to proposed drastic tariff measures. The president has announced a 90-day suspension of tariffs, but this does not include those imposed on China.
Within the U.S. solar industry, there is a divide over the impact of these low-cost solar cells from Southeast Asia. While domestic manufacturers have requested that the Commerce Department launch investigations, developers of renewable energy projects are expressing concern that the tariffs could inflate construction costs and hinder the manufacturing of panels that utilize imported cells.
Cambodia has chosen not to engage with the investigation, leading to the imposition of the steepest tariffs at 3,521 percent. Meanwhile, Vietnam faces tariffs up to 395.9 percent, Thailand is subject to 375.2 percent duties, and Malaysian companies will incur tariffs of 34.4 percent.
The U.S. International Trade Commission is set to review the proposed tariffs in June, which will serve to finalize these new trade measures.
