INDUSTRY BRIEF: New U.S. solar tariffs prompt Chinese withdrawal from SE Asia

The U.S. Department of Commerce last Friday announced new anti-dumping duties on solar products from Cambodia, Malaysia, Thailand, and Vietnam, with rates as high as 271.2%. The move appears to target Chinese photovoltaic companies that set up factories in those countries to avoid similar duties on their China made-products, and now many are closing those Southeast Asian facilities as a result.

According to the announcement from the U.S. International Trade Commission (USITC), the tariffs mainly target panels and their components made in Cambodia, Malaysia, Thailand and Vietnam with anti-dumping duties from 0% to 271.2%, depending on the producer and specific country.

Currently, about 80% of solar panels imported into the U.S. come from the four Southeast Asian countries. The new tariffs are expected to further affect the global solar industry’s supply chain, encouraging more production to shift to the U.S., gradually replacing imports.

Caixin reported that a number of Chinese solar companies have already shut down their factories in Southeast Asia. Some industry insiders said that setting up factories in the U.S. may be the only viable option for them. While construction and labor costs are higher, gross margins are also higher for panels sold in the U.S., and the market also has greater potential. Furthermore, the U.S. can also serve as a hub for exporting products to other markets.

By Lee Shih Ta

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