U.S. Finalizes Steep Tariffs On Southeast Asian Solar Imports Amid Trade Dispute

U.S. trade authorities have finalized high tariffs on most solar cells imported from Southeast Asia, marking a major development in a trade dispute launched a year ago. The case was initiated by Hanwha Qcells from South Korea, First Solar based in Arizona, and other smaller manufacturers who argued that Chinese companies were using Southeast Asian factories to flood the American market with solar panels priced below production costs. These companies sought to protect significant investments made in U.S. solar manufacturing facilities.

The group behind the petition, known as the American Alliance for Solar Manufacturing Trade Committee, alleged that Chinese-owned solar manufacturers operating in countries like Malaysia, Cambodia, Thailand, and Vietnam received unfair subsidies and sold their products at artificially low prices. These practices, they argued, made it difficult for American solar manufacturers to compete.

The newly finalized tariff rates vary across companies and countries, but in general, they are higher than the preliminary figures released late last year. Among the lowest duties imposed were on Jinko Solar’s products from Malaysia, which will be subject to a combined anti-dumping and countervailing duty of 41.56%. Meanwhile, Trina Solar’s products originating from Thailand are facing a much steeper tariff of 375.19%. Neither company has responded publicly to the new tariff announcement.

Tariffs on solar products from Cambodia are among the highest, with some duties exceeding 3,500%. This sharp increase is attributed to the decision by Cambodian producers not to cooperate with the U.S. investigation.

Tim Brightbill, a lawyer representing the U.S. manufacturing alliance, said the finalized tariffs represent a strong outcome. He expressed confidence that these measures would help address longstanding unfair trade practices that have negatively impacted American solar manufacturers.

The trade restrictions have already led to significant changes in global solar supply patterns. Southeast Asian countries, which supplied over $10 billion worth of solar goods to the U.S. last year, are now exporting far less. In contrast, shipments from alternative locations like Laos and Indonesia are increasing.

Despite the intentions behind the tariffs, not everyone agrees with the outcome. The Solar Energy Industries Association (SEIA), a key industry trade group, has warned that the new tariffs could backfire by increasing costs for U.S. manufacturers that rely on imported cells to assemble solar panels. These U.S. facilities have been expanding since the introduction of clean energy manufacturing subsidies in 2022. SEIA has yet to release an official response to the finalized tariffs.

Before the duties become permanent, the U.S. International Trade Commission must determine in June whether the domestic industry was indeed harmed by these subsidized and underpriced imports.