US introduces preliminary tariffs on Southeast Asian solar imports

The U.S. Department of Commerce (DOC) has imposed preliminary countervailing duties on solar energy imports from Cambodia, Malaysia, Thailand and Vietnam, a crucial move aimed at combatting what U.S. officials describe as a unfair competition from Chinese manufacturers operating in these countries.

The penalties, which range from modest to staggering – some as high as 292.61% – are designed to offset the advantage these companies enjoy through large government subsidies. According to the investigation, these subsidies allow foreign manufacturers to sell solar products in the United States at prices well below fair market value, driving down prices for domestic producers.

U.S. DOC officials calculated the duties by assessing the level of subsidy received by companies. In cases where companies like ISC Cambodia and GEP New Energy (Vietnam) have not fully cooperated, the ministry has applied a more punitive measure known as “adverse facts available”, resulting in lower rates. higher by 68.45% and 292.61%, respectively. Companies that provided clearer data – such as Hanwha Qcells (Malaysia), with a duty of 14.72%, and JinkoSolar Technology, with a rate of 3.47% – faced lower tariffs, reflecting a more transparent relationship between subsidies and prices.

Cambodian companies like Solarspace New Energy have been hit with a 68.45% duty, while other Cambodian exporters will see a more moderate 8.25% duty. Malaysian solar companies saw mixed results, with JinkoSolar receiving 3.47% and Qcells 14.72%, but others, such as Baojia New Energy, struggled with a hefty 123.94%. In Thailand, Trina Solar managed to get away with a negligible duty of 0.14%, but most others will have to make do with 23.06%. Vietnam saw the widest range of outcomes, with some companies, like JA Solar, facing a 2.85% tax, while others, like GEP New Energy, were hit with the maximum duty of 292.61%.

The case stems from a petition filed in April by the Business Committee of the American Solar Manufacturing Alliance, which includes prominent U.S. manufacturers like First Solar, Convalt Energy, REC Silicon and, somewhat ironically, Qcells – the latter having significant operations in Malaysia.

The coalition claims that Chinese companies operating in Southeast Asia receive large government subsidies and use those benefits to flood the U.S. market with lower-priced solar products. Timing is critical. Chinese solar companies, long dominant in the global market, have increasingly shifted production to Southeast Asia, particularly after the United States imposed tariffs on Chinese-made solar panels .

The stakes are high for the U.S. solar industry. Domestic manufacturers, expected to create tens of thousands of jobs in the coming years, say the playing field is far from level. Without protective measures, they say, the United States risks becoming too dependent on cheap foreign imports — a scenario that could stifle both economic growth and the country’s transition to clean energy.

Beijing has warned that these measures could backfire, potentially becoming a self-fulfilling prophecy by slowing the U.S. transition to clean energy due to rising costs of developing solar power. U.S. officials, however, say the move is critical to building a competitive and sustainable domestic solar manufacturing industry that is less dependent on foreign supply chains and better positioned to support long-term energy independence.

The investigation will continue, and final determinations are expected by early 2025. In the meantime, the U.S. International Trade Commission will review whether the domestic solar industry has been materially harmed by these imports. If the findings are upheld, the duties will apply retroactively to imports that arrived up to 90 days before the preliminary ruling.