The US Imposes Tariffs as High as 3,521% on Solar Panels From Southeast Asia.

The US Commerce Department has revealed plans to impose tariffs as high as 3,521% on solar panel imports from four Southeast Asian nations. This follows an investigation that began a year ago after several major solar equipment manufacturers requested the Biden administration’s protection for US operations.

The proposed tariffs, targeting companies in Cambodia, Thailand, Malaysia, and Vietnam, are a response to claims of Chinese subsidies and the dumping of excessively low-priced goods in the US market. A decision on these tariffs is expected in June from the International Trade Commission, another US government agency. The tariffs will vary depending on the company and the country of manufacture.

Some solar exporters in Cambodia could face the highest tariff rate of 3,521% due to insufficient cooperation with the Commerce Department’s investigation. Products from the Malaysian branch of the Chinese company Jinko Solar are set to face a much lower duty of just over 41%. Trina Solar, another Chinese company, faces a 375% tariff on products manufactured in Thailand.

Both companies have yet to respond to BBC News’ requests for comment. Many Chinese firms have moved operations to Southeast Asia in recent years to bypass tariffs that have been in place since the beginning of Donald Trump’s presidency.

The US Commerce Department’s findings have been supported by the American Alliance for Solar Manufacturing Trade Committee, which had previously pushed for the investigation. Tim Brightbill, the committee’s lead counsel, called the ruling a major victory for American manufacturing, asserting that Chinese solar companies have been exploiting the system.

In 2023, the US imported nearly $12bn worth of solar equipment from these four countries. While the tariffs are likely to benefit US manufacturers, they could also lead to higher costs for businesses and consumers who have benefited from cheaper solar products.

These new tariffs would be in addition to those already implemented by the Trump administration. The announcement of the tariffs comes just days after Chinese President Xi Jinping visited Vietnam, Malaysia, and Cambodia to strengthen ties and urge those nations to resist what he described as US “unilateral bullying.”

Trump’s administration has already imposed tariffs of up to 145% on Chinese imports, and other countries now face a blanket 10% US tariff until July. The administration has indicated that when combined with existing tariffs, some levies on Chinese goods could rise to 245%. In response, China has implemented a 125% tax on US goods and vowed to continue fighting the tariffs.