The United States has announced new tariffs of up to 3,521% on solar panels imported from Southeast Asia, targeting Chinese-owned factories in the region. The Commerce Department revealed the decision on April 22, 2025, after a year-long investigation into unfair trade practices. The action follows pressure from U.S. solar companies that called on President Joe Biden to defend domestic manufacturers from low-cost imports.
The investigation focused on Cambodia, Vietnam, Malaysia, and Thailand, where several Chinese companies operate. U.S. officials say these firms received illegal government support and sold their products in the U.S. at prices below fair market value.
Tariffs Vary Based on Company and Cooperation Level
The U.S. International Trade Commission (ITC) is expected to give a final decision on the case by June 2025. The newly announced tariffs are classified as anti-dumping and countervailing duties, designed to counter unfair subsidies and pricing practices.
The highest penalty—3,521%—was imposed on exporters in Cambodia, mainly due to a lack of cooperation during the investigation. In contrast, Jinko Solar, a Chinese-owned firm operating in Malaysia, received a much lower rate of just over 41%. Trina Solar, another major Chinese brand with production in Thailand, faces a tariff of 375%.
Neither company responded to requests for comment.
U.S. Manufacturers Welcome Decision, Warning of Price Effects
The decision has been welcomed by domestic producers. The American Alliance for Solar Manufacturing Trade Committee issued a statement celebrating the ruling.
“This is a clear victory for U.S. solar workers,” said Tim Brightbill, the committee’s legal advisor. “Chinese companies have been using loopholes to avoid earlier tariffs. Now they are being held accountable.”
Chinese solar producers have increasingly moved their operations to Southeast Asia to avoid older U.S. duties. In 2023, the U.S. imported nearly 12 billion dollars worth of solar technology from the affected countries.
While the tariffs aim to boost U.S. solar manufacturing, they may also cause higher prices for installers and consumers, especially in the short term.
Tariffs Add to Earlier Trade Measures Under Trump
These new duties come in addition to previous tariffs set during Donald Trump’s presidency. Back then, tariffs on Chinese solar imports reached up to 145%. With the latest measures, some combined rates could now reach 245%, depending on the origin and company.
Other countries not directly involved in the investigation are still subject to a general 10% U.S. tariff on solar equipment, a rule that remains in effect until at least July 2025.
China Pushes Back with Retaliatory Tariffs
China has responded firmly to the U.S. move. President Xi Jinping recently toured Vietnam, Malaysia, and Cambodia, seeking to strengthen regional cooperation and oppose what he called “unilateral bullying” by Washington.
As a countermeasure, China has introduced its own 125% tariffs on select U.S. exports and warned that further actions could follow. Chinese officials have vowed to defend their companies and challenge what they see as trade discrimination.
What’s Next for the Solar Industry?
Industry experts say the outcome could reshape the global solar market. The U.S. is trying to balance its goal of increasing clean energy use with protecting domestic jobs and businesses. The final ruling by the ITC in June will be critical in determining whether these tariffs will remain long term.
For now, solar installers and buyers in the U.S. may face rising costs. But many hope the changes will also lead to more local production and job growth in the clean energy sector.
