April 22, 2025 – Washington, D.C. — The U.S. Department of Commerce has announced sweeping new import tariffs on solar panels originating from Cambodia, Malaysia, Thailand, and Vietnam, following a yearlong investigation into what officials are calling a “transnational subsidy scheme” coordinated by China.
These new duties — some of which exceed 3,500% — are the result of findings that manufacturers in these countries have long acted as proxies for Chinese state-subsidized firms, rerouting products to avoid existing U.S. trade barriers. The tariffs include both anti-dumping and countervailing duties, aimed at neutralizing unfair pricing practices and foreign government support.
“The Commerce Department is holding China accountable for its transnational subsidies through other countries that harm American industry,” said Secretary of Commerce Howard Lutnick. “Market-distorting, unfair trade practices against America have no place to hide.”
Who’s Hit the Hardest?
Among the most severely impacted are several Cambodian manufacturers. Companies like Jintek Photovoltaic Technology, Hounen Solar, ISC Cambodia, and Solar Long PV-Tech will face a jaw-dropping 3,521.14% combined tariff, made up of:
- 117.18% anti-dumping duty
- 3,403.96% countervailing duty
Other penalties include:
- Thailand: Sunshine Electrical Energy and Taihua New Energy — up to 972%
- Malaysia: Baojia New Energy — around 250%
In general, tariffs vary widely by company and country, ranging from a few percentage points to over 1,000%, depending on the level of alleged dumping and government support.
Background: China’s Manufacturing Playbook
For years, Chinese solar manufacturers have maintained dominance by leveraging low-cost labor, state-backed financing, and vast economies of scale. However, U.S. tariffs dating back to 2012 and strengthened under the Trump administration in 2018 forced China to adapt its export strategy. One key maneuver: shifting production to Southeast Asia — particularly to countries with looser trade relationships with the U.S.
Today, many solar panel components shipped from Southeast Asia are designed, funded, or controlled by Chinese parent companies. This has blurred the line between origin and ownership, complicating global trade enforcement efforts and making transnational subsidy practices difficult to detect — until now.
The Petition and Political Momentum
This latest round of duties stems from a 2024 petition filed by the American Alliance for Solar Manufacturing Trade Committee. Backed by U.S. industry heavyweights like First Solar Inc, Hanwha Q CELLS USA, and Mission Solar Energy, the petition argued that the loophole in Southeast Asia was eroding domestic competitiveness and undermining energy security.
“Chinese firms are cheating the system through third-country proxies,” said Tim Brightbill, legal counsel for the Alliance. “This ruling sends a message: the U.S. will no longer tolerate trade distortions in its clean energy future.”
Will It Help or Hurt the U.S. Solar Market?
While U.S. manufacturers are celebrating, the solar installation sector remains cautious. Many project developers rely heavily on affordable panels from Asia to meet climate goals and power expansion timelines. Domestic production capacity, though growing, is still far from meeting national demand.
In 2018, tariffs imposed by the Trump administration led to a 30% import duty on foreign solar panels. According to the Solar Energy Industries Association (SEIA), the result was the loss of over 62,000 solar jobs, higher project costs, and a measurable decline in deployment pace.
“We support fair trade,” said a SEIA spokesperson, “but these extreme duties could reduce access to solar technology at the very moment the U.S. needs to scale clean energy quickly.”
Broader Energy and Trade Implications
The Biden administration has pledged to decarbonize the U.S. energy system by 2035, making solar energy a pillar of its strategy. The dilemma, however, lies in balancing industrial protection with supply chain affordability. Some critics argue that harsh tariffs — while politically popular — could unintentionally delay climate progress.
Moreover, this decision adds fuel to the ongoing U.S.-China trade conflict, which now encompasses semiconductors, electric vehicles, and rare earth minerals. The tariffs also mark one of the first high-profile U.S. rulings against transnational subsidies, setting a precedent that could affect industries far beyond solar.
What Happens Next?
All eyes now turn to the U.S. International Trade Commission (ITC), which will issue its final ruling by June 2, 2025. If the ITC determines that the domestic solar industry has suffered injury, the tariffs will be enacted in full. If not, the Commerce Department’s measures may be withdrawn.
Related Coverage
- Can the U.S. Resurrect Its Solar Manufacturing Industry?
- Biden’s Clean Energy Strategy: Protection or Progress?
- How China Gained Dominance in Global Solar Production
- Rare Earth Supply Chains and National Security
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