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US imposes tariffs up to 3,521 percent on China-associated solar ship-ins

(MENAFN) The U.S. Department of Commerce has announced steep new tariffs—reaching as high as 3,521%—on solar panel imports from Southeast Asia, accusing Chinese-owned manufacturers of bypassing trade rules. The targeted countries include Malaysia, Cambodia, Thailand, and Vietnam, which collectively exported over $12.9 billion in solar equipment to the U.S. last year, according to Bloomberg.

These new penalties, known as antidumping and countervailing duties, are designed to offset what Washington sees as unfair pricing and government subsidies benefiting foreign producers at the expense of U.S. solar manufacturers. The action follows a complaint filed by the American Alliance for Solar Manufacturing Trade Committee, representing several U.S.-based companies. They claim that Chinese firms, by operating through Southeast Asian factories, sold products below production costs and enjoyed state-backed advantages.

Tariffs vary depending on the company and country of origin. For example, Jinko Solar’s Malaysian-made products will face a 41.56% duty, while Trina Solar’s exports from Thailand will be hit with a 375.19% tariff. Cambodian suppliers, many of whom did not participate in the investigation, are being penalized with tariffs as high as 3,521%.

Critics, including the Solar Energy Industries Association (SEIA), warn that these duties could backfire by raising costs for American companies that rely on imported solar cells to manufacture panels. The U.S. International Trade Commission (ITC) will vote in June on whether the imports caused significant harm to the domestic industry, a required step before the tariffs can be fully implemented.

This latest move mirrors past trade actions. Roughly a decade ago, when similar duties were imposed on Chinese solar imports, many Chinese firms shifted production to Southeast Asia to avoid U.S. tariffs.

The new penalties add to the broader tariff regime introduced by former President Donald Trump, which includes existing levies of 145% on Chinese goods, with threats of raising them to 245%. China has pushed back forcefully, denouncing the U.S. actions as “bullying,” imposing its own 125% tariffs on American imports, and promising to resist further escalation.

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