PVTIME – The US International Trade Commission (USITC) has ruled that solar products imported from Cambodia, Malaysia, Thailand and Vietnam threaten American manufacturers, paving the way for punitive tariffs on equipment from the four nations. In a unanimous ruling on Tuesday, the commission concluded that low-cost solar cells and modules from these Southeast Asian countries were harming US producers, marking the final step before tariffs are imposed in June.
This victory for domestic manufacturers, including Hanwha Q Cells and First Solar Inc., comes after they accused their Southeast Asian rivals of undercutting prices through alleged government subsidies and below-cost selling. These issues have not been alleviated by federal tax incentives for local advanced energy production.
Tariff rates vary significantly by country. Cambodian manufacturers face penalties as high as 3,521% after Phnom Penh declined to cooperate with the US investigation, while Vietnam (396%), Thailand (375%) and Malaysia (34%) face lower, though still substantial, charges.
The ruling stems from a year-long inquiry launched under President Joe Biden at the request of US solar firms. Last year, the US imported $12.9 billion worth of solar equipment from these four nations, accounting for almost 80% of all such imports.
While the tariffs aim to protect American industries, analysts warn that they could increase the cost of solar projects and disrupt the US clean energy transition, given that Southeast Asia dominates the supply of US solar components. These measures will affect both large-scale utility projects and residential installations, putting the administration’s ability to balance domestic manufacturing support with climate objectives to the test.
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