VIỆT NAM’S SOLAR EXPORTS HIT WITH US DUTIES OF UP TO 542.6 PER CENT

Solar cell and panel imports to the US from Việt Nam will face countervailing duties of up to 542.6 per cent.

Electrical workers clean solar panels on household rooftops in Tây Ninh Province. — VNA/VNS Photo Thanh Tân

HÀ NỘI — The US has officially imposed steep tariffs on solar energy products imported from four Southeast Asian countries, including Việt Nam, Malaysia, Thailand and Cambodia.

The tariffs unveiled on Apr 21 vary widely depending on the company and country, but were broadly higher than the preliminary duties announced late last year.

According to the US Department of Commerce, solar cell and panel imports will face varying countervailing duties — as high as 3,403.9 per cent for Cambodia, 799.5 per cent for Thailand, 542.6 per cent for Việt Nam, and 168.8 per cent for Malaysia.

These countries accounted for 77 per cent of US solar panel imports in 2024, according to Bloomberg NEF.

The move delivers a heavy blow to the region’s renewable energy manufacturing sector, with Việt Nam among the hardest hit.

It follows a year-long trade investigation initiated at the request of US solar manufacturers after a complaint that Chinese companies operating in Southeast Asia were allegedly dumping products and benefitting from unfair government subsidies, distorting the market.

The case was brought by Korea's Hanwha Qcells, Arizona-based First Solar Inc and several smaller producers seeking to protect billions of dollars in investments in US solar manufacturing.

Industry insiders consider the new tariff alarming, representing a major shock to Việt Nam’s green energy export industry.

The US has been one of Việt Nam’s largest markets for solar equipment. The new tariffs will increase costs and risk, causing Vietnamese manufacturers to lose market share in the US.

Renewable energy companies are under immense pressure, and without swift adaptation, the loss of the US market and revenue shortfalls in the near future are highly likely.

It is urgent for Việt Nam to pivot quickly, expanding into new markets including Europe, Japan and Australia, while enhancing competitiveness and adhering more strictly to international standards to overcome the growing wave of trade barriers.

In order for the tariffs to be finalised, the US International Trade Commission (ITC) is expected to vote in June based on its assessment of the actual damage to the US domestic solar manufacturing sector. — BIZHUB/VNS

Source: VNS