Cambodia Hit with 3,521% Tariff in U.S. Solar Crackdown

[geovalin]

Khmer Times

 

Cambodia’s solar panel exports have been hit with a staggering 3,521% U.S. tariff—the highest ever imposed in the sector—as Washington cracks down on what it calls unfair trade practices in Southeast Asia.

 

The decision, announced Monday by the U.S. Department of Commerce, finalises year-long investigations into claims that Chinese-owned companies were using factories in Cambodia, Vietnam, Thailand, and Malaysia to flood the U.S. market with underpriced, heavily subsidised solar products.

 

Cambodian manufacturers were penalised most harshly for failing to cooperate with the inquiry, resulting in the eye-watering duty. By contrast, tariffs for Malaysian firms like Jinko Solar sit at 41.56%, while Thai operations linked to Trina Solar face rates of 375.2%. Vietnam’s average tariff comes in at just under 396%.

 

“These are very strong results,” said Tim Brightbill, counsel for the American Alliance for Solar Manufacturing. “They address years of unfair competition that have damaged U.S. industry.”

 

Cambodia’s solar exports have already suffered. Last year, shipments dropped to $830 million—down from over $2 billion in 2023—after the Biden administration began rolling back trade exemptions. While the country’s industry isn’t dominated by major Chinese manufacturers, it’s believed that some Chinese integrators and assemblers operate locally, complicating the issue of ownership and accountability.

 

Despite the punitive measures, final enforcement depends on a ruling from the U.S. International Trade Commission, expected by 2 June. If confirmed, the tariffs could reshape global solar trade, as Southeast Asia accounted for over $12 billion in U.S. imports in 2023 alone.

 

Experts warn the fallout may be twofold: a win for American producers, but a blow to businesses and consumers who’ve benefited from cheap solar equipment. Meanwhile, analysts say Cambodia could look to emerging markets in the Middle East and Africa to offset losses.

 

While the long-term impact remains unclear, one thing is certain—this unprecedented tariff marks a seismic moment for Cambodia’s growing solar industry.

 

-2025-04-23