U.S. Slaps Record Tariffs on Southeast Asian Solar Panels in Sweeping Trade Crackdown

In a seismic move that underscores escalating trade tensions over clean energy technologies, the United States has announced sweeping anti-dumping and countervailing duties on solar panel imports from four Southeast Asian countries. The new tariffs, which reach up to an unprecedented 3,521%, target imports from Cambodia, Vietnam, Thailand, and Malaysia, as the U.S. Department of Commerce aims to counter what it describes as Chinese attempts to evade duties by funneling subsidized solar components through third countries.

Cambodia Hit the Hardest

Cambodia faces the most severe penalties under the new policy. Several Cambodian firms, including Hounen Solar, Jinktek Photovoltaic, ISC Cambodia, and Solar Long PV Tech, were found to be non-cooperative during the Commerce Department’s investigation, resulting in astronomical combined tariffs of up to 3,521.14%.

This is a dramatic escalation from earlier preliminary countervailing duties, where Cambodia’s rates stood at approximately 729%. Even the least affected Cambodian firms are now subject to duties exceeding 650%.

The impact has been swift and severe. U.S. imports of Cambodian solar panels dropped by 99.66% between January 2024 and January 2025. Overall, Cambodia’s solar exports fell nearly 60% year-over-year, plummeting from over $2 billion in 2023 to just $830 million in 2024. The tariffs effectively eliminate Cambodia as a viable exporter of solar modules to the U.S.

Broad-Based Regional Impact

Other Southeast Asian countries have not been spared:

• Vietnam: Vietnamese manufacturers now face tariffs as high as 395.9%. U.S. imports from Vietnam fell by 91.5% year-over-year.
• Thailand: Tariffs are set at 375.2%, causing a 90% decline in exports to the U.S.
• Malaysia: While overall country-wide duties are lower at 34.4%, specific companies like Jinko Solar’s Malaysian operations were hit with a 41.56% tariff.

Malaysia’s relatively lighter penalties still pose a strategic dilemma for manufacturers. The initial countervailing duty on Jinko Solar’s Malaysian panels was only 3.47%, but that rose sharply after findings of Chinese subsidy benefits for critical materials like solar glass and silver paste.

These findings reflect U.S. concerns that major Chinese solar companies, including Jinko and Trina Solar, have been using Southeast Asian production hubs to bypass existing trade penalties aimed at Chinese-made products.

A Dramatic Shift in Global Supply Chains

The tariffs have triggered immediate shifts in global supply chains. As the U.S. clamps down on imports from the four targeted nations, alternative suppliers are seeing a surge in demand. For instance:

• Indonesia: Exports to the U.S. jumped by a staggering 4,797.96% in the same January-to-January timeframe.
• Laos: Panel shipments to the U.S. increased by 214%, as manufacturers scramble to reorient production to countries not subject to the new duties.

The United States has not yet announced whether other countries may come under similar scrutiny in the future. However, the dramatic spike in shipments from Indonesia and Laos could attract attention from U.S. trade officials if these trends persist.

Strategic and Political Backdrop

These tariffs are among the highest ever imposed in the history of U.S. trade enforcement, and they reflect broader geopolitical and industrial policy dynamics. The Biden administration has prioritized reshoring green technology supply chains and protecting domestic solar manufacturing under the Inflation Reduction Act and other climate-focused legislation.

This latest trade enforcement effort follows a lengthy investigation launched in 2022, spurred by allegations that Chinese solar companies were using Southeast Asian subsidiaries to circumvent existing tariffs first imposed over a decade ago.

By aggressively targeting Southeast Asian intermediaries, the U.S. aims to close loopholes and revitalize its domestic clean energy manufacturing sector, though it risks driving up costs for solar installations in the short term.

Outlook

The tariffs are expected to have long-term implications for both global trade dynamics and the pace of solar deployment in the U.S. With Southeast Asia accounting for the majority of America’s solar panel imports in recent years, project developers may face delays and price increases as they pivot to alternative suppliers.

Meanwhile, Southeast Asian nations may be forced to reevaluate their roles in the global solar supply chain and their reliance on Chinese upstream input. The next phase of this unfolding trade dispute may hinge on how quickly manufacturers can relocate production and whether other countries will become the next focus of U.S. trade scrutiny.