The levies target products manufactured in Malaysia, Cambodia, Thailand, and Vietnam
Washington has set tariffs of up to 3,521% on solar imports from Southeast Asia, according to information published by the US Department of Commerce on Monday. The hikes follow allegations that Chinese-owned manufacturers operating in the region had violated trade rules.
The tariffs target imports from Malaysia, Cambodia, Thailand, and Vietnam, countries that collectively supplied over $12.9 billion in solar equipment to the US last year, according to Bloomberg.
Known as antidumping and countervailing duties, the measures aim to counteract the impact of what the US Commerce Department deems to be unfair subsidies and pricing practices.
The decision was made following a petition lodged by the American Alliance for Solar Manufacturing Trade Committee, which represents several US-based manufacturers. The domestic firms alleged that Chinese solar manufacturers operating factories in the four Southeast Asian countries exported panels at prices lower than production costs and benefited from unfair subsidies that undermine the competitiveness of American products.
The penalties vary by company and country: Jinko Solar’s products from Malaysia face combined dumping and countervailing duties of 41.56%, Trina Solar’s Thai-made goods are subject to 375.19% tariffs, and Cambodian suppliers, who did not cooperate with the probe, face punitive levies of up to 3,521%.
Critics of the measure, such as the Solar Energy Industries Association (SEIA), argue that the tariffs would hurt US solar manufacturers by increasing the cost of imported cells, which American factories use to assemble panels, Reuters noted.
The International Trade Commission, an independent, nonpartisan US federal agency that investigates trade-related matters, is set to vote in June to determine whether the domestic industry was materially harmed by the imports, a necessary step for the tariffs to take full effect.
After similar duties were imposed on solar imports from China roughly 12 years ago, Chinese firms responded by setting up operations in other nations that weren’t affected by the tariffs, noted Bloomberg.
The new levies will come on top of the broad tariffs introduced by US President Donald Trump, which have jolted global markets. So far, Trump has imposed tariffs of 145% on Chinese imports, and threatened a further possible hike to 245%.
China has accused the US of “bullying,” retaliated with a 125% tax on US products and vowed to “fight to the end.”
