WASHINGTON (Diya TV) — The U.S. Department of Commerce has imposed sweeping new tariffs on solar panel imports from four Southeast Asian nations, escalating efforts to curb China’s influence in the global solar market and support domestic manufacturers.
Announced on April 21, the new duties, soaring as high as 3,521%, target solar products originating from Cambodia, Vietnam, Malaysia, and Thailand. The move follows a yearlong investigation by the Commerce Department, which found that Chinese solar companies had routed production through these countries to sidestep existing U.S. trade restrictions, while benefiting from unfair government subsidies.
The probe, launched by the Biden administration in response to a petition from the American Alliance for Solar Manufacturing Trade Committee, concluded that these practices allowed the dumping of artificially low-priced solar panels into the U.S. market, undercutting American producers. The Alliance represents several major U.S. solar firms, including First Solar, Hanwha Q Cells, and Mission Solar Energy LLC.
Cambodia faces the steepest penalties, with tariffs reaching up to 3,521%, after the country chose not to cooperate with U.S. investigators. The other three nations—Vietnam, Thailand, and Malaysia—also face significant but slightly lower duties. These tariffs are in addition to the 10% baseline duties established during the Trump administration, which remain in effect.
The Commerce Department said it identified substantial evidence that Chinese manufacturers shifted operations to Southeast Asia as a means of evading existing tariffs. “These companies set up shop in other countries not to genuinely expand production or serve new markets, but to continue flooding the U.S. with cheap solar products,” a department spokesperson said.
In 2024, the U.S. imported approximately $12.9 billion in solar equipment from the four targeted countries, according to data reported by Bloomberg. This substantial inflow has long worried U.S. solar producers, who argue that Chinese dominance in the global solar supply chain has left the American renewable energy sector overly reliant on foreign manufacturing.
The new tariffs mark one of the most aggressive actions to date aimed at leveling the playing field for domestic solar producers. Supporters of the measure say it will give American firms a better shot at competing in an industry critical to the clean energy transition.
“The United States has the ingenuity and the industrial base to lead in solar, but we can’t do it if we’re being undercut by unfair trade practices,” said a spokesperson from Hanwha Q Cells, one of the petitioning companies. “This is about ensuring a secure and sustainable future for solar manufacturing in America.”
Still, critics warn the tariffs could slow down the broader adoption of solar power by raising costs for installers and consumers. Industry groups such as the Solar Energy Industries Association (SEIA) have previously cautioned that aggressive trade actions could delay project timelines and inflate energy prices.
