The US Commerce Department has revealed intentions to impose tariffs of as high as 3,521% on solar panel imports from four Southeast Asian countries.
A year-long investigation culminated following requests from several major solar equipment manufacturers for the administration of then-President Joe Biden to safeguard their operations in the United States.
The proposed levies are aimed at the company, Vietnam—Ireland, Malaysia, and Vietnam subsidies. They are related to allegations concerning subsidies from China and the dumping of products at unfairly low prices in the US market.
The International Trade Commission, a distinct entity within the US government, is expected to announce its final decision regarding the new tariffs in June.
Countervailing and anti-dumping duties, commonly referred to as tariffs, differ depending on the companies involved and the countries where their products are manufactured.
In Cambodia, certain exporters of solar equipment encounter steep duties that reach as high as 3,521%. This tariff surge is attributed to perceived noncompliance with an investigation conducted by the Commerce Department.
Products manufactured in Malaysia by the Chinese company Jinko Solar encountered relatively low duties, slightly exceeding 41%.Trina Solar, a Chinese company, is now facing tariffs of up to 375% on its products manufactured in Thailand.
Requests for comment from BBC News went unanswered by both companies.
In recent years, many Chinese companies have relocated their operations to Southeast Asia, aiming to circumvent tariffs that have been in place since the beginning of US President Donald Trump’s first term.
The American Alliance for Solar Manufacturing Trade Committee expressed approval of the US Commerce Department’s findings, having previously, according to US Census Bureau figures, and the government initiated the investigation.
“This marks a significant triumph for long-held belief: that solar companies based in China have been manipulating the system,” stated Tim Brightbill, lead counsel for the Alliance.
In 2023, the United States saw imports of nearly $12 billion (£8.9 billion) in solar equipment from four countries, as reported by the US Census Bureau.
The proposed tariffs are expected to boost US solar panel manufacturers; however, they may also increase expenses for businesses and consumers who have enjoyed the advantages of more affordable solar products.
The new levies would be added to the existing tariffs that the Trump administration previously implemented.
The planned tariffs were announced just days after Chinese President Xi Jinping’s tour of Vietnam, Malaysia, and Cambodia.
The journey sought to strengthen relationships within the region and motivate those countries to oppose what he described as the United States’s “unilateral bullying.”
Trump has implemented tariffs on goods imported from China, reaching as high as 145%. Countries worldwide are currently confronted with a comprehensive US tariff set at 10%, which will remain in effect until July.
The administration announced last week that adding new tariffs to existing ones could raise levies on certain Chinese goods by as much as 245%.
In a significant escalation of trade tensions, China has imposed a staggering 125% tax on American goods, declaring its intent to “fight to the end” in this ongoing dispute.
