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US solar |
Commerce Department sets duties as high as 3,400% on solar products from Cambodia, Vietnam, Thailand, and Malaysia
The U.S. Department of Commerce has concluded a landmark trade investigation by imposing some of the highest anti-dumping and countervailing duties ever recorded on imported solar panels. The decision targets silicon photovoltaic cells and modules from four Southeast Asian nations: Cambodia, Vietnam, Thailand, and Malaysia.
These duties follow a year-long investigation into allegations that Chinese solar companies, previously subject to tariffs, shifted operations to Southeast Asia in an attempt to bypass U.S. trade regulations. The move is widely regarded as a turning point for the global solar supply chain, with U.S. officials and industry leaders viewing it as a necessary step to restore fair competition.
According to the final determination, some companies—particularly those that failed to comply with the Commerce Department’s requests—will now face duties exceeding 3,400%, an unprecedented figure. For example, four Cambodian firms, including Jintek and ISC, will be subject to this highest tier. In comparison, these same companies were only facing duties of 68% under the preliminary findings issued in October 2024.
On a broader scale, countrywide anti-dumping rates have also surged. Vietnam faces an average rate of 271%, Thailand 111%, and Cambodia 125%. Malaysia, while receiving the lowest general rate—just under 9%—still saw several of its companies slapped with individual duties over 80%, due to non-cooperation during the investigation.
The Commerce Department also imposed steep countervailing duties, which are used to offset the benefits companies receive from government subsidies. Cambodia again ranked highest, with a countrywide rate near 535%, while Vietnam, Thailand, and Malaysia saw rates of 125%, 264%, and 32%, respectively. The lowest countervailing duty—under 15%—was assigned to Hanwha Q Cells Malaysian subsidiary.
These tariffs are expected to take effect in June 2025, pending the final approval of the U.S. International Trade Commission (ITC). In certain cases, particularly in Thailand and Vietnam, duties may apply retroactively if the agencies determine that "critical circumstances" exist—such as import surges meant to beat the implementation timeline.
The ruling stems from a petition filed by the American Alliance for Solar Manufacturing Trade Committee, which includes prominent U.S. solar companies like FirstSolar, Mission Solar, and the U.S. arm of Hanwha Q Cells. The coalition argues that Chinese firms exploited a tariff moratorium enacted by President Biden in 2022 to reroute supply chains and avoid penalties, effectively distorting the market.
Tim Brightbill, legal counsel for the petitioner coalition, welcomed the decision. He emphasized that the tariffs represent a major victory for domestic manufacturers and are essential to encouraging long-term investment in the American solar industry. “These duties will go a long way toward protecting U.S. jobs and restoring a level playing field,” Brightbill said.
Industry analysts believe that the tariffs will have a ripple effect on solar deployment in the U.S., at least in the short term. Project developers who rely heavily on low-cost imported modules may face delays or cost increases. However, domestic producers see the ruling as a long overdue reset that prioritizes manufacturing resilience over low-cost imports.
As the global solar sector undergoes this structural shift, all eyes are on how China and Southeast Asian exporters will respond—and how U.S. clean energy goals will adapt to a more protected domestic market.
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