US Commerce Department Slaps Preliminary Duties of Up to 271% on Southeast Asian Solar Imports

In a significant move for the American solar industry, the US Commerce Department has issued preliminary duties of up to 271% on crystalline silicon photovoltaic cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam. The decision stems from allegations that these imports are being sold below production costs, undermining US manufacturers and the country’s renewable energy goals.

Trade Tensions and Tariffs: A Solar Power Struggle

The preliminary findings are part of an ongoing effort to address unfair trade practices in the solar industry. US solar panel makers, represented by the American Alliance for Solar Manufacturing Trade Committee, argue that these imports harm domestic businesses and hinder investments in American solar manufacturing.

The latest tariffs include:

• Cambodia: Cash deposit rate of 117.1%.

• Malaysia: Rates ranging from 17.8% for Jinko Solar Technology to 81.2% for other suppliers. Hanwha Q Cells Malaysia faces no dumping margin and has been assigned a 0% rate.

• Vietnam: Rates for various exporters, including JA Solar and Trina Solar, range from 53.2% to 56.4%, with unspecified exporters facing a steep 271.3% rate.

  
  

The final determination is expected in April 2025, with rates potentially subject to revision.

Implications for the Solar Industry

This move follows earlier investigations into claims that these imports benefit unfairly from government subsidies in their home countries. The decision also mirrors a trend dating back 12 years, when similar tariffs were imposed on Chinese solar imports. In response, Chinese manufacturers shifted production to Southeast Asia, a region now under scrutiny.

Tim Brightbill, lead counsel for the petitioners, emphasized the significance of the decision:

"These preliminary duties address years of harmful trade practices, protecting billions of dollars in new American solar investments and jobs."

The announcement has garnered mixed reactions. Domestic manufacturers like First Solar saw their shares rise by 3.8%, while JinkoSolar’s US depository receipts fell by 2.9%. However, critics argue that such tariffs could increase solar project costs and disadvantage smaller renewable energy developers.

A Balancing Act: Supporting Domestic Growth Amid Global Competition

The Commerce Department’s move aligns with the US strategy to bolster its solar manufacturing sector while reducing reliance on foreign supply chains. Yet, the increased costs for solar imports may challenge the Biden administration's renewable energy goals.

As the solar industry anticipates the final decision in April, the ruling represents a critical juncture for balancing domestic industry protection with the affordability and expansion of solar power projects across the United States.