The US wants to impose new tariffs of up to 3521% on imports of solar panels from Thailand, Cambodia, Vietnam and Malaysia.
Biden’s solar idea continued
This decision was made following a nearly year-long trade investigation initiated by US solar panel manufacturers during the administration of former President Joe Biden. The investigation showed that Asian companies unfairly received government subsidies and supplied their products to the US at prices below cost.
On the one hand, the imposition of tariffs is designed to support local producers of similar equipment. In recent years, the US has seen a boom in the construction of new solar panel plants, fuelled by subsidies and inflation-reducing measures adopted by the Biden administration. However, US companies have warned that even in this favourable environment, they face unfair competition from foreign players.
On the other hand, the new tariffs could be a deterrent to renewable energy development in the US. Local developers of solar power plants have long relied on inexpensive imported equipment from Asia. Now they will have to buy more expensive American counterparts, which will inevitably make projects more expensive and slow down the pace of commissioning new “green” capacities.
The tariffs will hit Cambodia, which refused to co-operate in the investigation, particularly hard. It is subject to a maximum rate of 3,521%. For individual companies in Vietnam the tariffs will be 395.9% and in Thailand 375.2%. The nationwide rate for Malaysia is 34.4%.
Major Chinese solar panel manufacturers such as Jinko Solar, Trina Solar and JA Solar are also hit by the tariffs. Jinko Solar is subject to tariffs of 245 per cent on exports from Vietnam and 40 per cent on exports from Malaysia. Trina Solar’s Thai subsidiary Trina Solar was subjected to tariffs of 375% and Vietnam’s subsidiary was subjected to tariffs of over 200%. JA Solar’s Vietnamese equipment is subject to tariffs of around 120%.
However, their shares were only slightly affected by the news, as the companies had previously moved some production to other Asian countries not affected by the restrictions. Trina securities lost in price 1.6%, Jinko – 0.9%, JA Solar – 0.1%. Experts believe that India, Indonesia and Laos may become the next targets for US tariffs.
In 2024, imports of relevant equipment from four SEA countries to the US totalled $12.9 billion or 77% of the total supplies in this segment.
Tariffs weaken US dollar
The US dollar has come under renewed pressure as the impact of former President Donald Trump’s tariffs reverberates through global markets, which has contributed to the euro’s strength in recent weeks.
Currency analysts point to growing investor concerns about the long-term trade imbalance and rising import costs associated with tariff policies initiated under the Trump administration. Tariffs targeting China and other key trading partners have led to inflationary trends and reduced foreign demand for the dollar.
“The greenback is no longer the safe haven it once was,” said one analyst, noting that investors are shifting to the euro and other stable currencies.
The euro is gaining ground as markets see it as a more attractive alternative amid uncertainty surrounding US fiscal and trade policies.
