The United States has announced record-breaking tariffs on solar panel imports from Cambodia, Thailand, Vietnam, and Malaysia, following a year-long investigation into alleged unfair subsidies and dumping practices in the solar photovoltaic (PV) manufacturing sector. The final decision, released by the US Department of Commerce, imposes steep countervailing and anti-dumping duties—some exceeding 3,500%. While tariffs were expected, industry observers say the severity of the rates has surprised many and will disproportionately hurt smaller, less flexible manufacturers.

The investigation originated from a 2024 complaint by the American Alliance for Solar Manufacturing Trade Committee. The US Commerce Department concluded that manufacturers in the four countries had benefited from subsidies provided by the Chinese government and had sold products below production cost—undercutting US competitors. A final ruling by the US International Trade Commission is expected in June. If approved, the tariffs will take effect shortly after.

“These tariffs were long coming, we just didn’t know by how much,” said Eugene Chong, head of key accounts for Asia Pacific at solar manufacturer Astroenergy. “Everyone expected it to disrupt business entirely.” (Ho 2025). Cambodia has been hit hardest, with some exporters facing a combined duty of 3,521%. The Department of Commerce cited a lack of cooperation from Cambodian firms during the investigation. In Vietnam and Thailand, some companies will face tariffs of up to 814% and 972%, respectively. Malaysian exporters face a broader range—from under 15% to as much as 250%, depending on the company. Among the named firms are major China-headquartered manufacturers like Trina Solar, JA Solar, and Jinko Solar, which have production facilities in Southeast Asia. Trina Solar faces a 375% duty in Thailand, while Jinko Solar’s Malaysian operations will see a 40.3% tariff.

“This is a decisive victory for American manufacturing,” said Tim Brightbill, legal counsel to the Alliance. “It confirms long-standing concerns about unfair competition.” (Da Silva 2025). However, these measures could lead to higher costs for US solar developers and installers. Toh reasoned that boosting domestic manufacturing might come at the expense of affordability and project momentum in the short term.

According to head of retail research at CGS International Securities, Billy Toh, the impact will vary sharply depending on each company's exposure and operational flexibility. Some large solar manufacturers had already shifted operations out of Southeast Asia in anticipation of the tariffs. “The previous rounds of tariffs have already killed off solar manufacturing in Malaysia, as Chinese manufacturers face higher costs,” claims Davis Chong, president of the Malaysian Photovoltaic Industry Association (MPIA) (Ho 2025). Some companies have moved to other regions outside of Southeast Asia. 

On the other hand, smaller firms may not have the resources to adapt. For instance, smaller firms in Vietnam and Cambodia such as Boviet, VSUN, and Hounen could be effectively priced out of the US market (Ho 2025). On a broader scale, Cambodia’s exports of solar panels to the US fell by nearly 60% over the past year, according to official trade data. Meanwhile, other countries have stepped in to fill the gap. Imports from Indonesia surged by nearly 4,800%, and Laos saw a 214% increase over the same period.