Solar products made in Southeast Asia targeted

“Southeast Asia is a major source of imports for the US. If tariffs are imposed, they would hurt the US more as developers of solar projects as well as consumers may face higher payments on electricity amid the US’ decarbonization of its power sector,” Lin said.

In 2023, the top three countries from which the US imported PV cells were Malaysia ($320 million), South Korea ($130 million) and Vietnam ($90 million). Imports from Southeast Asian countries totalled $460 million, accounting for 70 per cent of the total US imports of PV cells, data from the China Chamber of Commerce for Import and Export of Machinery and Electric Products showed.

In 2023, PV module imports into the US from Southeast Asian countries were worth $12.51 billion, making up 82.7 per cent of the total import value.

“It’s hard for the US to find any substitutes to solar products imported either from Southeast Asia or China. Its upstream industrial chain is relatively weak and is seeking new producers from countries such as Mexico and India. The investigation and tariffs are more of a method to win more time,” Lin said.