The US Department of Commerce (DOC) has issued preliminary countervailing duties on solar imports from Cambodia, Malaysia, Thailand, and Vietnam, a critical move aimed at addressing what US officials describe as unfair competition from Chinese-owned manufacturers operating in these countries.
The penalties, which range from modest to staggering—some as high as 292.61%—are designed to offset the advantage these companies gain through substantial government subsidies. According to the investigation, these subsidies allow foreign manufacturers to sell solar products in the US at prices well below fair market value, undercutting domestic producers.
US DOC officials calculated the duties by assessing the level of subsidization received by the companies. In cases where firms like ISC Cambodia and GEP New Energy (Vietnam) did not fully cooperate, the department applied a more punitive measure known as “adverse facts available,” resulting in higher rates of 68.45% and 292.61%, respectively. Companies that provided clearer data—such as Hanwha Qcells (Malaysia), with a duty of 14.72%, and JinkoSolar Technology, at 3.47%—faced lower tariffs, reflecting a more transparent relationship between subsidies and pricing.
Cambodian companies like Solarspace New Energy were hit with a 68.45% duty, while other exporters from Cambodia will see a more moderate 8.25%. Malaysia’s solar firms faced mixed results, with JinkoSolar receiving 3.47% and Qcells 14.72%, but others, such as Baojia New Energy, were saddled with a punishing 123.94%. In Thailand, Trina Solar managed to escape with a negligible 0.14% duty, but most others will contend with 23.06%. Vietnam saw the broadest range of outcomes, with some firms, like JA Solar, facing 2.85%, while others, like GEP New Energy, were dealt the maximum duty of 292.61%.
The case stems from a petition filed in April by the American Alliance for Solar Manufacturing Trade Committee, which includes prominent US manufacturers like First Solar, Convalt Energy, REC Silicon, and, somewhat ironically, Qcells—the latter having substantial operations in Malaysia.
The coalition claims that Chinese-owned companies operating out of Southeast Asia are receiving significant government subsidies and using those advantages to flood the US market with below-cost solar products. The timing is critical. Chinese solar companies, long dominant in the global market, have increasingly shifted production to Southeast Asia, particularly after the US imposed tariffs on China-made solar panels.
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The stakes are high for the US solar industry. Projected to create tens of thousands of jobs in the coming years, domestic manufacturers argue that the playing field is far from level. Without protective measures, they say, the US risks becoming overly dependent on cheap foreign imports—a scenario that could stifle both economic growth and the country’s clean energy transition.
Beijing has cautioned that these measures might backfire, potentially becoming a self-fulfilling prophecy by slowing the US clean energy transition due to increased solar development costs. US officials, however, contend that the move is essential for building a competitive and sustainable domestic solar manufacturing industry—one that is less dependent on foreign supply chains and better positioned to support long-term energy independence.
The investigation will continue, with final determinations expected by early 2025. Meanwhile, the US International Trade Commission will examine whether the domestic solar industry has been materially harmed by these imports. Should the findings hold, the duties will apply retroactively to imports that arrived up to 90 days before the preliminary decision.