Trump’s 3,521% Tariffs: A Solar Storm Hits Southeast Asia

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.