The USITC has approved DOC-recommended action in AD/CVD tariffs on solar imports from Southeast Asian nations
US solar manufacturers support the tariffs, while the developer community worries about rising project costs
SEIA sees the decision delaying US solar expansion, with limited domestic cell production risks
The US International Trade Commission (USITC) issued its final affirmative injury determination in the antidumping and countervailing duty (AD/CVD) investigation regarding solar cells and modules imported into the US from Southeast Asia.
The commission determined that solar imports from Cambodia, Malaysia, Thailand and Vietnam threaten the domestic solar industry with material injury as solar cells and modules from these countries are sold at less than fair value, and subsidized by the respective governments.
It has approved tariffs proposed by the US Department of Commerce to be imposed on such products from the 4 Southeast Asian nations. For Cambodian exporters to the US, the rates go beyond even 3,000% (see US Solar Imports From Cambodia Hit Hardest With Final AD/CVD Duties).
As the next step, the USITC will issue AD and CVD orders on June 9, 2025, which will come into effect on June 16, 2025, paving the way for the US Customs and Border Protection (CBP) to start collecting duties on these products imported into the US from the 4 nations.
The USITC will release a public report on the imports of these products from the 4 Southeast Asian nations that will contain the views of the commission and information developed during the investigations. It will be available by June 30, 2025.
The petition, to launch an AD/CVD investigation into solar imports from the 4 countries, was initiated by a coalition of US solar manufacturers through the American Alliance for Solar Manufacturing Trade Committee (AASMTC).
In a statement, the coalition has welcomed the conclusion to this year-long case. The Co-Chair of Wiley’s International Trade Practice and Lead Counsel to the Alliance Tim Brightbill said, “Today’s vote leaves no doubt: These Chinese-headquartered companies have been violating trade laws by overwhelming the U.S. market with unfairly cheap, dumped and subsidized solar panels — and they continue to do so from third-party markets around the world, undermining U.S. industrial strategy and stunting new investment. This cannot stand. Our growing American industry deserves – and now will have – the chance to compete fairly.”
However, the Solar Energy Industries Association (SEIA) is concerned with the final USITC decision, saying that this will increase costs for the solar products that American companies need to build projects and grow domestic manufacturing.
“This determination especially harms U.S. solar module producers that depend on access to imported solar cells as we ramp up domestic cell manufacturing capacity. Imposing additional tariffs on cell imports at this stage risks stalling progress and undermining the very industry they are meant to support,” argued SEIA President and CEO Abigail Ross Hopper.
She added, “After today’s decision, it is more important than ever for Congress to support American solar manufacturing. Tax credits for domestic production must be preserved and strengthened as lawmakers consider the budget reconciliation bill.”
SEIA has already sounded an alarm about the Reconciliation Bill as it believes, in its present form, it will jeopardize billions in solar and storage investments, while risking around 300 factories (see SEIA: 300 Solar & Storage Factories At Risk With US Legislation).
Nevertheless, there are growing concerns in the US industry that with the AD/CVD tariffs imposed on the 4 Southeast Asian nations, Chinese companies are shifting their focus to accessing the US market from other destinations, including Indonesia and Laos.
A recent Reuters report refers to US trade data to claim that the combined share for Indonesia and Laos in the US solar modules market rose to 29% in the 3 months after the 2nd round of US solar duties were imposed in November 2024, from less than 1% in 2023.
Solar panel exports from Vietnam, Malaysia, Thailand and Cambodia to the US fell by 33% on an annual basis in the 9 months since the first round of tariffs in June. In the same period, exports from regional neighbors Indonesia and Laos grew around 8-fold.