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Recent developments have seen significant tariff increases on solar cells imported from four Southeast Asian nations that have long been key suppliers to the United States. The tariffs, which have skyrocketed by as much as 3,521 percent, are a major change in trade policy impacting Cambodia, Malaysia, Thailand, and Vietnam. These countries have collectively supplied over three-quarters of the solar module imports to the US in the previous year, as reported by Bloomberg.
The severe tariff increases render the solar products from these nations essentially “unmarketable” in the United States, as noted by the Wall Street Journal.
This tariff adjustment follows extensive investigations by the Commerce Department into potential tariff evasion, assessing whether Chinese enterprises were rerouting their products through Southeast Asian countries to sidestep tariffs. This development marks a further intensification of the trade tensions initiated during Donald Trump’s administration, contributing to fluctuations in global market dynamics, even as the current administration has temporarily paused some tariffs for 90 days, excluding those on China.
The reaction to these tariffs has been mixed among US solar industry stakeholders. While domestic manufacturers have requested the Commerce Department to pursue investigations into the pricing practices of imported solar cells, project developers express concern that these tariffs will escalate costs related to solar panel construction and production.
Cambodia has notably declined to cooperate with the investigation, resulting in it facing the highest tariff rate of 3,521 percent. Vietnam, Thailand, and Malaysia have also seen sharp increases in tariffs, hitting levels of 395.9 percent, 375.2 percent, and 34.4 percent, respectively.
In the coming months, the US International Trade Commission will deliberate on these proposed tariffs in June, a decision that will greatly influence the future of solar imports from the affected Southeast Asian countries.
Source
www.theverge.com