Some Chinese solar manufacturers operating in Southeast Asia saw their tariff rates increase on Feb. 18 following a preliminary ruling by the U.S. Department of Commerce in an anti-dumping and countervailing duty case brought by U.S.-based solar producers.
The duties impact several major Chinese solar brands, including Jinko Solar and Trina Solar, as well as Vietnamese manufacturers that Commerce believes have been circumventing tariffs by importing components from mainland China for final assembly. Mainland China remains subject to Section 201 tariffs on solar imports.
Malaysia, Cambodia, Thailand, and Vietnam have become manufacturing hubs for Chinese solar companies, driven by rising labor costs in China and escalating geopolitical tensions with the U.S. In response, Chinese solar firms—along with manufacturers from other nations—have shifted production to Southeast Asia to avoid higher tariffs. While this strategy benefited them, it negatively impacted U.S.-based solar manufacturers, which had previously gained some relief under Section 201 tariffs and additional support from the Inflation Reduction Act (IRA). However, the massive surge in solar panel production from these four countries, alongside China, has driven prices down to levels that undermine the IRA’s intended benefits.
The new tariffs could slow the influx of Southeast Asian-manufactured solar panels into the U.S. market.
Some of the highest tariff rates were imposed on lesser-known manufacturers with production facilities in the U.S.
Hounen began investing in U.S. solar assembly in 2023, after the passing of the IRA. Hounen is a qualifying company for IRA tax benefits.
It is unclear if Hounen will source solar cells locally, or invest in new capacity in the U.S.
CPA’s economics team released a solar supply chain study in January that reveals that despite significant investments spurred by the Inflation Reduction Act, the domestic solar supply chain is threatened by Chinese overproduction, price setting, and circumvention of trade laws. Heavily subsidized Chinese firms control an average 80% of the global solar supply chain and are the biggest players in U.S. solar manufacturing now thanks in large part to IRA tax benefits. Within the U.S., Chinese solar companies are set to dominate local production. CPA’s accounting shows that China solar companies account for 39% of total U.S.-based capacity, compared to U.S.-owned which is just 24%.
Jintek Photovoltaic Technology Co. of Cambodia is also facing 846% tariffs. Jintek is a solar module manufacturer that has been flooding the U.S. since the 2022 solar moratorium announced by then-President Biden until now. Some of their biggest importers were Universal Solar America LLC and German solar company Axitec. Universal is said to be sourcing from Panama now, which has a free trade agreement with the U.S. The Panama Trade Promotion Agreement went into effect on October 31, 2012. Most Panamanian goods currently enter duty-free with virtually all goods entering tariff free by the time the agreement is fully implemented in 2028.
GEP New Energy, a solar cells and modules maker from Yangzhong, China set up shop in Vietnam in 2022 during the solar moratorium. Their new AD/CVD rate is 563.89%
Well known China solar giants like Jinko, Trina, and JA Solar have tariff rates ranging from a low 19.82% for Jinko’s operations in Malaysia, to a high 91.44% for Trina Solar’s factory in Thailand.
Tariffs were not increased for Jinko or JA, but went from 0.14% for Trina CVD duties to 13.59%. Their original dumping charge of 77.85% remains.
“After the initial AD and CVD findings were released, we predicted the tariff rates would rise as more data became available,” said Tim Brightbill, Partner at Wiley Rein LLP and lead attorney for the Alliance, which first petitioned for the AD/CVD investigation in April 2024. “This prediction proved accurate — over the past three months, tariffs have increased across Cambodia, Thailand, and Vietnam from as little as 13% to as much as an incredible 661%. These increases resulted from calculation corrections, new subsidy claims, penalties for non-compliance, and additional evidence. We expect these strong results to continue when the final decisions are announced in April.
The Alliance, whose members include U.S. manufacturers First Solar, Mission Solar and Qcells, claimed that solar cells and panels from Cambodia, Malaysia, Thailand and Vietnam are being dumped into the U.S. market and supported by unfair subsidies.
Final determinations in the antidumping/countervailing duties investigation for Southeast Asian solar are not expected until later this spring.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
China’s Solar Companies in Southeast Asia Whacked With 100%+ Tariffs—What’s Next?
Some Chinese solar manufacturers operating in Southeast Asia saw their tariff rates increase on Feb. 18 following a preliminary ruling by the U.S. Department of Commerce in an anti-dumping and countervailing duty case brought by U.S.-based solar producers.
The duties impact several major Chinese solar brands, including Jinko Solar and Trina Solar, as well as Vietnamese manufacturers that Commerce believes have been circumventing tariffs by importing components from mainland China for final assembly. Mainland China remains subject to Section 201 tariffs on solar imports.
Malaysia, Cambodia, Thailand, and Vietnam have become manufacturing hubs for Chinese solar companies, driven by rising labor costs in China and escalating geopolitical tensions with the U.S. In response, Chinese solar firms—along with manufacturers from other nations—have shifted production to Southeast Asia to avoid higher tariffs. While this strategy benefited them, it negatively impacted U.S.-based solar manufacturers, which had previously gained some relief under Section 201 tariffs and additional support from the Inflation Reduction Act (IRA). However, the massive surge in solar panel production from these four countries, alongside China, has driven prices down to levels that undermine the IRA’s intended benefits.
The new tariffs could slow the influx of Southeast Asian-manufactured solar panels into the U.S. market.
Some of the highest tariff rates were imposed on lesser-known manufacturers with production facilities in the U.S.
Hounen Solar, a subsidiary of Zhejiang Hounen Photoelectric Co., Ltd., faces an astonishing 846.98% tariff on imported solar goods. This is likely solar cells used to install into solar panels at Hounen’s South Carolina factory.
Hounen began investing in U.S. solar assembly in 2023, after the passing of the IRA. Hounen is a qualifying company for IRA tax benefits.
It is unclear if Hounen will source solar cells locally, or invest in new capacity in the U.S.
Jintek Photovoltaic Technology Co. of Cambodia is also facing 846% tariffs. Jintek is a solar module manufacturer that has been flooding the U.S. since the 2022 solar moratorium announced by then-President Biden until now. Some of their biggest importers were Universal Solar America LLC and German solar company Axitec. Universal is said to be sourcing from Panama now, which has a free trade agreement with the U.S. The Panama Trade Promotion Agreement went into effect on October 31, 2012. Most Panamanian goods currently enter duty-free with virtually all goods entering tariff free by the time the agreement is fully implemented in 2028.
GEP New Energy, a solar cells and modules maker from Yangzhong, China set up shop in Vietnam in 2022 during the solar moratorium. Their new AD/CVD rate is 563.89%
Well known China solar giants like Jinko, Trina, and JA Solar have tariff rates ranging from a low 19.82% for Jinko’s operations in Malaysia, to a high 91.44% for Trina Solar’s factory in Thailand.
Tariffs were not increased for Jinko or JA, but went from 0.14% for Trina CVD duties to 13.59%. Their original dumping charge of 77.85% remains.
“After the initial AD and CVD findings were released, we predicted the tariff rates would rise as more data became available,” said Tim Brightbill, Partner at Wiley Rein LLP and lead attorney for the Alliance, which first petitioned for the AD/CVD investigation in April 2024. “This prediction proved accurate — over the past three months, tariffs have increased across Cambodia, Thailand, and Vietnam from as little as 13% to as much as an incredible 661%. These increases resulted from calculation corrections, new subsidy claims, penalties for non-compliance, and additional evidence. We expect these strong results to continue when the final decisions are announced in April.
The Alliance, whose members include U.S. manufacturers First Solar, Mission Solar and Qcells, claimed that solar cells and panels from Cambodia, Malaysia, Thailand and Vietnam are being dumped into the U.S. market and supported by unfair subsidies.
Final determinations in the antidumping/countervailing duties investigation for Southeast Asian solar are not expected until later this spring.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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