US imposes preliminary duties on Southeast Asian solar imports

The US Commerce Department has announced preliminary duties of up to 271% on solar imports from Southeast Asia, citing findings that these products are being sold below production costs, harming domestic manufacturers, Business Times reported. The decision marks a victory for US solar panel producers and is part of ongoing efforts to bolster the domestic solar supply chain.

The duties target crystalline silicon photovoltaic cells and modules imported from Cambodia, Malaysia, Thailand and Vietnam, which currently supply the majority of US solar equipment. This follows an earlier probe indicating that these imports unfairly benefit from government subsidies in their countries of origin.

The investigations were initiated after a petition by the American Alliance for Solar Manufacturing Trade Committee, representing companies such as First Solar, Hanwha Qcells USA and Mission Solar Energy. These firms argue that cheap imports undermine American manufacturing and jobs, as well as investments in clean energy.

Tim Brightbill, counsel to the petitioners, hailed the move as a step toward addressing unfair trade practices. Shares of US-based First Solar rose by 3.8% following the announcement, reflecting optimism in the domestic solar industry.

Preliminary rates by country

• Cambodia: Cash deposit rate of 117.1%.
• Malaysia: Rates range from 0% for Hanwha Q Cells Malaysia to 81.2% for other suppliers.
• Vietnam: Exporters like JA Solar Vietnam and Jinko Solar (Vietnam) Industries face rates between 53.2% and 56.4%, while others are subject to a 271.3% rate.
• Thailand: Similar duties are under review.

While domestic solar manufacturers support the duties, renewable energy developers and foreign producers argue they may increase project costs and disadvantage smaller players in the US solar market.

This latest move follows earlier tariffs imposed on Chinese solar products more than a decade ago, which led many Chinese firms to shift production to other Southeast Asian nations. Final decisions on these trade probes, including possible adjustments to the duties, are expected in April 2025.

With these developments, the US aims to reinforce its clean energy sector while addressing concerns over global trade practices in renewable energy technologies.