According to recent information, a new solar trade war might be on its way between the US and Southeast Asia. In a significant move to resolve a year-long trade dispute in which American manufacturers accused Chinese corporations of flooding the market with unfairly inexpensive goods, US trade officials finalized high tariffs on the solar panels coming from Southeast Asian countries. First Solar Inc. of Arizona, Hanwha Qcells of Korea, and many smaller manufacturers launched the action last year to protect billions of dollars invested in US solar production.
The solar trade war between the US and Southeast Asia could impact millions of companies
The American Alliance for Solar Manufacturing Trade Committee has accused Chinese solar panel manufacturers in Malaysia, Cambodia, Thailand, and Vietnam of shipping panels at lower prices than their production costs and receiving unfair subsidies, making American goods uncompetitive. Before the tariffs can be finalized, the International Trade Commission must decide in June whether the subsidized and dumped imports have caused serious injury. The tariffs announced on Monday are generally higher than the preliminary duties announced late last year, despite their varying country and industry levels.
Jinko Solar’s Malaysian products had one of the lowest combined dumping and countervailing duty rates at 41.56%. Products made by rival Trina Solar are subject to a 375.19 percent duty in Thailand. Requests for comment from Jinko and Trina were not immediately returned. Furthermore, because Cambodian producers refused to cooperate with the US probe, they would face taxes reaching 3,500%. Moreover, Tim Brightbill, a lawyer for US manufacturers, told reporters by telephone that the results were significant. He also highlighted that they have faith they will take action against the unfair trade practices of the Chinese-owned businesses in these four nations, which have been hurting the US solar manufacturing sector for too long.
Over $10 billion worth of solar panels that are supplied to the nation could be impacted by the solar trade war
The prospect of tariffs on nations that supplied the United States with more than $10 billion in solar panels last year, which accounted for the vast majority of domestic supplies, has caused a fundamental shift in the global solar trade war. Imports from the four target countries are much lower this year than last, while shipments of panels from Indonesia and Laos are increasing.
Tariffs would hurt US solar companies, according to the effort’s detractors, including the trade group Solar Energy Industries Association, because they would increase the cost of the imported cells that American factories use to assemble panels. Since a new sustainable energy manufacturing subsidy was established in 2022, those facilities have started expanding.
This is the country that could benefit from the solar trade war between the US and Southeast Asia
US tariffs have disrupted the supply chain, which will lead to a new solar trade war, with Southeast Asian nations accounting for over 75% of the US’s $12 billion solar imports in 2023. As a result, US buyers are seeking reliable, tariff-free alternatives, with India emerging as a potential solution. Manufacturers of solar equipment in India, like Premier Energies, Waaree Energies, and Vikram Solar, are already benefiting. Leading companies’ stock values jumped by as much as 6% after the tariff announcement. With the lowest export tariff of any major exporting country at 36%, India is becoming more and more alluring to US businesses looking to stabilize their supply.
India needs to combine pragmatism with policy to solidify its advantage, which means easier factory land acquisition, quicker clearances, simpler financing, and more aggressive R&D spending. Additionally, it entails increasing worldwide outreach and promoting “Made in India” solar as a dependable, eco-friendly, and high-end brand. India might become more than just a replacement supplier if it is handled properly. It might develop into a solar superpower, establishing the next phase of leadership in sustainable energy.
