The Blubber

The U.S. Commerce Department has unveiled plans to impose tariffs of up to 3,521% on solar panel imports from four Southeast Asian countries, following a year-long investigation initiated after several major solar equipment manufacturers requested protection for their U.S.-based operations during the Biden administration.

The proposed duties—which target companies operating in Cambodia, Thailand, Malaysia, and Vietnam—stem from allegations of Chinese subsidies and the dumping of underpriced goods into the U.S. market.

A final decision on the tariffs is expected in June from the U.S. International Trade Commission.

The tariffs, categorized as countervailing and anti-dumping duties, will vary by company and country of origin. Certain exporters in Cambodia face the steepest penalties of 3,521% due to what the Commerce Department described as insufficient cooperation during the investigation.

Products manufactured in Malaysia by Chinese firm Jinko Solar are subject to some of the lowest proposed duties, at just over 41%, while another China-based company, Trina Solar, is facing duties of 375% on goods produced in Thailand.

Neither company responded immediately to BBC News' request for comment.

In recent years, many Chinese solar firms have relocated production to Southeast Asia in an effort to sidestep tariffs originally imposed under President Donald Trump’s first term.

The Commerce Department's findings were praised by the American Alliance for Solar Manufacturing Trade Committee, which had urged the investigation. “This is a decisive victory for American manufacturing and confirms what we’ve long known: that Chinese-headquartered solar companies have been cheating the system,” said Tim Brightbill, lead counsel to the Alliance.

In 2023, the U.S. imported nearly $12 billion worth of solar equipment from the four targeted countries, according to U.S. Census Bureau data.

While the new duties aim to bolster domestic solar panel manufacturers, they could also drive up costs for American businesses and consumers that have benefited from the availability of low-cost foreign solar equipment.

These planned tariffs would be layered atop existing levies implemented during Trump’s previous term.

The announcement came just days after Chinese President Xi Jinping wrapped up visits to Vietnam, Malaysia, and Cambodia—trips intended to strengthen regional ties and encourage those governments to resist what Xi described as U.S. “unilateral bullying.”