US plans tariffs of up to 3,521% on Southeast Asian solar panels

The United States is preparing to impose sweeping tariffs, reaching as high as 3,521%, on solar panel imports from four Southeast Asian nations following a year-long investigation into alleged circumvention of trade rules by Chinese manufacturers.

According to the US Department of Commerce, quoted by British media, the tariffs will target solar products exported from Cambodia, Thailand, Malaysia, and Vietnam. 

The stiffest duties will be levied on goods from Cambodia, where companies failed to cooperate with the probe, resulting in punitive rates exceeding 3,500%. In contrast, Chinese solar giant Jinko Solar faces tariffs of just over 41% on its Malaysia-made products, while rival Trina Solar’s exports from Thailand will be subject to duties of 375%.

The investigation was launched last year after complaints from American solar manufacturers, including Korean-owned Hanwha Qcells and Arizona-based First Solar, who accused Chinese firms of exploiting factories in Southeast Asia to flood the US market with low-cost, state-subsidised products. Smaller US panel makers also joined the petition.

A final ruling on the tariffs is expected in June by the US International Trade Commission, which will determine whether the duties should be made permanent.

However, the move has sparked concern within the solar industry. The Solar Energy Industries Association (SEIA) warned that the tariffs could backfire by raising the cost of imported components that many US panel assemblers rely on, potentially harming domestic manufacturing instead of protecting it.

In parallel, the head of the International Energy Agency (IEA), Fatih Birol, raised broader concerns about energy security during an interview ahead of a major international energy summit in London. Speaking to the Financial Times, Birol said lessons from the energy crisis triggered by Russia’s 2022 invasion of Ukraine had yet to be fully absorbed.

The London summit—co-hosted by Birol and UK Energy Secretary Ed Miliband—will gather ministers from over 60 countries, including the US, France, Germany, Japan, India, and several major oil and gas exporters such as Saudi Arabia, Qatar, and the UAE. Executives from leading fossil fuel and renewable energy companies, including Shell, BP, ExxonMobil, Ørsted, and Vestas, are also expected to attend.

Russia was not invited, and China declined to participate due to scheduling conflicts—an absence Birol called unfortunate but not critical. “The countries attending the meeting make up three-quarters of the world’s GDP, which in my view is not bad at all,” he said.

Birol identified three pillars of energy security: supply diversification, political stability to support long-term investment, and international cooperation. He warned that ongoing conflicts in Ukraine and Gaza, as well as threats to undersea infrastructure and growing cyber risks, are compounding both traditional and emerging challenges.

The summit will be preceded by technical discussions between UK officials and industry leaders focused on natural gas security, supply chains for critical minerals, and support for Ukraine’s energy system.

By Tamilla Hasanova