US, tariffs up to 3,521% on Southeast Asian solar panels

Trump administration aims to hit Chinese subsidies: tariffs affect products from Malaysia, Cambodia, Thailand and Vietnam. Involves $12 billion of imports

The US administration has announced plans to impose tariffs of up to 3,521% on solar panels from Cambodia, Malaysia, Thailand and Vietnam, in response to subsidies received by local companies from the Chinese government. The measure, proposed by the International Trade Administration (Ita), aims to counter what Washington calls unfair competition supported by Beijing.

According to the results of an investigation launched in April 2024, “companies in each country have received subsidies from the Chinese government”. Ita emphasised that this is one of the first cases in which it has been possible to prove the existence of transnational subsidies. The proposed duties vary according to origin: 34.41% for panels from Malaysia, 38% for those from Vietnam, 651.85% for Cambodia. However, some Cambodian companies, such as Hounen Solar and Solar Long Pv-Tech, risk record tariffs of 3.521%, more than 35 times the price of their products.

The final step in implementing the measures lies with the International Trade Commission (ITC), which will have to determine by 2 June whether these subsidies have actually harmed US industry. If this is confirmed, the duties will be officially triggered.

In 2023, the products affected by the investigation accounted for a total value of approximately USD 12 billion. These measures would be in addition to the 10 per cent duties already imposed on 2 April by President Donald Trump on the majority of imports coming into the US, and the so-called “reciprocal” tariffs that were announced but suspended a week later.

The investigation started at the request of the American Solar Industry Alliance, which accused suppliers from the four Asian countries of acting as subsidiaries of Chinese companies, thus evading the duties already imposed on Beijing and indirectly benefiting from its state subsidies.

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