- By Supratik Das
- Tue, 22 Apr 2025 02:39 PM (IST)
- Source:JND
In a dramatic new height of trade enforcement, the United States announced colossal new tariffs up to 3,521 per cent on Southeast Asian solar imports, aimed at Chinese firms supposedly evading current trade restrictions. The action comes after a yearlong investigation by the US Commerce Department, which found that solar producers in Cambodia, Vietnam, Malaysia, and Thailand were unfairly profiting from Chinese government subsidies and dumping low-cost solar products in the US market.
Cambodia To Suffer Highest Tariff
Cambodia will suffer the highest penalty, with tariffs of up to 3,521 per cent, after the nation walked out of the investigation, according to the Commerce Department.
•Vietnamese producers will be hit with duties of up to 395.9 per cent
•Thailand will be hit with levies of up to 375.2 per cent
•Malaysia has been given a country-wide tariff of 34.4 per cent
These levies are over and above the previous 10 per cent base rates initiated under past President Donald Trump, who has continued to advocate for tougher protectionism in trade. The US brought in 12.9 billion USD in solar equipment from the four countries targeted in 2024 alone. The new tariffs will help to safeguard local solar manufacturers and boost the US renewable energy sector, which has been grappling with uncertainty caused by changing policy trends in Washington.
Chinese Companies Relocated Production To Dodge Tariffs
The inquiry uncovered that numerous Chinese solar companies transferred manufacturing facilities to Southeast Asia over the last few years to avoid direct tariffs put on Chinese exports during Trump's first presidency. This is a resounding win for American manufacturing," stated Tim Brightbill, counsel for the coalition of US solar companies that brought the initial petition. "Chinese-headquartered firms have been gaming the system, dumping on US companies and putting American jobs at risk, "He added.
Will India Too Feel Heat On This?
Though India is not specifically mentioned in the latest round of US tariffs, trade experts feel the action may have a knock-on effect on Indian solar manufacturers and exporters. With Southeast Asian supply chains facing pressure, global demand for solar equipment may shift, causing more competition and scrutiny on other exporting countries like India. Experts also caution that if the US expands its probe into suspected trade evasion, India's solar industry might be in the crosshairs, particularly as it ramps up exports to take advantage of growing global demand. Indian businesses that use Southeast Asian components are also likely to see cost increases and supply chain disruptions as a result of the new tariffs.