The United States has announced plans to impose significant tariffs on solar panels imported from Southeast Asia, a move expected to impact the country’s renewable energy sector. The tariffs, ranging from 13.4% to 250%, will be applied to solar panels and cells from countries such as Thailand, Vietnam, Cambodia, and Malaysia. The decision is intended to protect American solar manufacturers, but critics argue it may hinder the growth of the domestic solar industry.
The tariffs are a result of an investigation launched by the U.S. Department of Commerce in December 2021, which aimed to determine whether solar panel imports from Southeast Asia were circumventing existing tariffs on Chinese solar products. The investigation found that some companies were assembling solar panels in these countries using components from China to avoid paying duties.
The tariffs will be imposed on imports of crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products. The duties will be applied as follows: 13.4% for products from Malaysia, 15.1% for products from Thailand, 19.5% for products from Vietnam, and 25.1% to 250% for products from Cambodia.
The decision has sparked concerns among solar industry stakeholders, who argue that the tariffs will increase the cost of solar panels and slow down the adoption of renewable energy in the United States. The Solar Energy Industries Association (SEIA) estimates that the tariffs could lead to a 24% decline in solar installations and result in the loss of 45,000 jobs.
On the other hand, some domestic solar manufacturers have welcomed the decision, arguing that it will help level the playing field and encourage investment in American manufacturing. The U.S. International Trade Commission (ITC) has also stated that the tariffs will help prevent the circumvention of existing trade laws and protect American businesses.
The tariffs are set to remain in place for at least two years, during which time the ITC will conduct a review to determine whether the duties are still necessary. The decision has significant implications for the U.S. solar industry, which has grown rapidly in recent years, with solar energy accounting for over 40% of new electricity-generating capacity added in 2022.