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.
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