Solar flare-up! US tariffs scorch Thai imports in fiery trade row
A blistering tariff bombshell from Washington has lit a fire under Southeast Asia’s solar imports, with Thailand among the hardest hit, as the United States slaps sky-high duties of up to 3,521% on imports, claiming unfair competition from Asian suppliers.
The US has launched a full-scale trade crackdown on solar imports from Thailand, Vietnam, Malaysia, and Cambodia, slapping colossal new duties that could reach a scorching 3,521%, in a move that’s rattled the global clean energy market and sparked fury across Southeast Asia.
Announced yesterday, April 21, the tariff hike follows a year-long probe into claims that solar manufacturers in the region benefited from shady government subsidies and dumped cut-price panels on the US market. The investigation was triggered by complaints from American solar firms, keen to shield themselves from what they called unfair foreign competition.
While hailed as a win for domestic manufacturers, the new levies have sent shockwaves through the renewable energy sector, especially US developers who’ve long relied on cheaper Asian panels to power their green projects.
The duties pile onto earlier tariffs introduced under President Donald Trump, disrupting supply chains and adding new hurdles for an already battered solar sector facing political whiplash in Washington.
“These antidumping and countervailing duties are meant to level the playing field,” said the US Commerce Department, claiming the new penalties target distorted pricing and illegal subsidies.
The biggest wallop? Cambodia, which refused to cooperate with the probe, now faces tariffs of up to 3,521%. Vietnam is hit with duties up to 395.9%, Thailand with 375.2%, and Malaysia with 34.4%. Chinese-linked giants like Jinko, Trina, and JA Solar have also been slapped with eye-watering duties depending on the country of export.
“This is a decisive victory for American manufacturing,” crowed Tim Brightbill, lead counsel for the coalition that sparked the case. “It confirms what we’ve long suspected, that Chinese solar companies were gaming the system through satellite factories in Southeast Asia, undermining US industry and workers.”
The US imported nearly US$13 billion (around 477 billion baht) worth of solar equipment from the four targeted countries last year, accounting for a staggering 77% of its total panel imports, according to BloombergNEF, reported Bangkok Post.
While Biden’s Inflation Reduction Act has sparked fresh investment in domestic solar factories, US manufacturers remain jittery about being undercut by foreign firms. Companies like First Solar and Hanwha Q Cells, both behind the complaint, are expected to benefit from the new trade shields.
However, the final say rests with the US International Trade Commission, which must now decide whether these imports truly harm local producers. A decision is expected within a month.
Industry insiders warn that if the tariffs are upheld, the ripple effects could be severe, jacking up project costs, slowing down green energy rollouts, and souring relations with Southeast Asia.
For now, Thailand and its neighbours are left reeling, scorched by a solar war they didn’t see coming.
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