Yesterday, the Trump administration dropped a bombshell: tariffs as high as 3,521% on solar panels from Cambodia, Vietnam, Malaysia, and Thailand. This move, finalised after a year-long probe started under Biden, targets alleged subsidies and dumping by Chinese-backed firms in the region. Cambodian producers, uncooperative with the U.S. investigation, face the steepest duties, while Malaysia’s Jinko Solar got off lighter at 41%, and Thailand’s Trina Solar copped 375%. The U.S. International Trade Commission will make a final call in June, but the damage is already rippling through global markets.
Trump touts this as a win for American manufacturers (not to mention a win for coal) but history tells a different story. Tariffs often backfire, jacking up costs for consumers – like the $1,240 -$3,800 hit per U.S. household from his earlier levies. Southeast Asia, a linchpin in solar supply chains, exported $12.9 billion in equipment to the U.S. last year – 77% of its module imports. These tariffs threaten to choke that flow, pushing Cambodia and Vietnam closer to China, especially after Xi Jinping’s recent charm offensive in the region. Ironically, Trump’s China-focused strategy might just tighten Beijing’s grip.
For Australia, the fallout is a mixed bag. We dodged the worst of Trump’s reciprocal tariffs, but solar costs could rise: Our renewable sector, already navigating domestic policy shifts relies on affordable imports to meet energy targets. Higher prices could stall projects, while trade tensions in Southeast Asia – a key partner – risk broader economic instability. As the election looms, both Albanese and Dutton face pressure to address these disruptions.
The Solar Energy Industries Association warns that these tariffs will hurt U.S. solar assemblers dependent on imported cells, and by extension, global green goals. Trump’s zero-sum trade war might protect a few factories, but it’s a dark cloud over renewable progress.
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Michael, this sentence seems illogical – “We dodged the worst of Trump’s reciprocal tariffs, but solar costs are set to rise.”
How will our solar costs rise when we have not increased any tariffs with the countries you’ve noted in your article?
USA costs will obviously rise, but we still have the same import arrangements we’ve always had with Jinko Solar, Trino Solar, etc.
Maybe I’ve missed a piece of relevant info somewhere??
TT, see the following sentence after that bit of speculation. I should have connected the two sentences better than I did, which I have slightly amended.
Thanks for picking that up, btw. It helps me to add clarity. I’ve also added a link.