On 21 April, the US Department of Commerce announced the imposition of record high duties – up to 3521% – on imports of solar equipment from Cambodia, Vietnam, Malaysia and Thailand. This was reported by Bloomberg.
Basic rates of duties:
- Cambodia – up to 3521
- Thailand – 1002%.
- Vietnam – 914%.
- Malaysia – 250% of thetotal
These measures are the result of a year-long trade investigation initiated under President Joe Biden at the request of US solar panel manufacturers.
The goal is to support local producers, but the price may be high
While the duties are meant to protect US domestic industry, they also pose serious risks to the green energy sector, which has been heavily dependent on cheaper imports from Asia.
“These duties could trigger a new wave of project delays, higher costs, and even more instability in the industry,” Bloomberg notes.
Risk for the market: 77% of imports at risk
According to BloombergNEF, in 2024, the US imported $12.9 billion worth of solar equipment from these countries. This is about 77% of all US solar panel imports.
Analysts point out that this could slow down the pace of the transition to renewable energy in the US, which is already suffering from domestic political turbulence and changes in climate policy.
The China factor and new geoenergy
Many companies from China use Cambodia, Vietnam and Malaysia as intermediate points to circumvent US restrictions. The new duties are in fact aimed at China’s dominance in the solar technology supply chain, although not directly.
Experts expect this to be the case:
- will push the US to increase domestic production of equipment for SPPs;
- will increase the cost of clean energy projects;
- will exacerbate tensions in global trade in energy technologies.
