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| Solar Tariffs |
Commerce Department’s sweeping decision reconfigures global supply chain
Cambodia, Vietnam, Thailand, Malaysia face steep anti-dumping and countervailing duties
The U.S. Department of Commerce has imposed record-breaking tariffs—as high as 3,400%—on solar imports from Cambodia, Vietnam, Thailand, and Malaysia, signaling a major escalation in the ongoing trade conflict over Chinese supply chain circumvention.
The final ruling, issued after a year-long investigation, found that Chinese solar firms had rerouted their operations through Southeast Asia to evade pre-existing U.S. tariffs. As a result, the Commerce Department leveled both anti-dumping (AD) and countervailing duties (CVD) on silicon photovoltaic cells and modules from companies operating in those four countries.
Among the most heavily penalized are Cambodian firms such as Jintek and ISC, which now face duties of over 3,400%, a drastic rise from the 68% proposed in the October 2024 preliminary ruling.
Countrywide Tariff Breakdown
- Vietnam: AD up to 271%
- Thailand: AD up to 111%
- Cambodia: AD up to 125%, CVD near 535%
- Malaysia: General AD just under 9%, but some firms face 80%+ due to non-cooperation
Hanwha Q Cells' Malaysian subsidiary received the lowest CVD, under 15%, due to compliance and limited subsidy support.
Implementation Timeline and Industry Response
The new duties are expected to take effect by June 2025, pending final approval from the U.S. International Trade Commission (ITC). In some instances—especially in Vietnam and Thailand—retroactive duties may apply if import surges are judged to have occurred in anticipation of these penalties.
The decision follows a petition by the American Alliance for Solar Manufacturing Trade Committee, which includes FirstSolar, Mission Solar, and Hanwha Q Cells USA. The group argued that the 2022 tariff moratorium under President Biden was exploited by Chinese firms to undermine U.S. manufacturers.
“This is a massive victory for American solar manufacturing,” said Tim Brightbill, counsel for the coalition. “It sends a strong message that trade law circumvention won’t be tolerated.”
While U.S. solar developers warn of higher costs and possible delays due to reduced access to low-cost modules, domestic manufacturers see this as a critical reset to bolster supply chain resilience and protect American jobs.
As Southeast Asian exporters, and China, evaluate their next steps, the decision marks a pivotal moment in the realignment of the global solar technology supply chain.
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