U.S. Slaps 3,521% Tariffs on Solar Imports—SolarBank CEO Shares Growth Strategy
The U.S. government has imposed steep tariffs on solar panels and cells imported from four Southeast Asian countries: Cambodia, Vietnam, Malaysia, and Thailand. These new duties come from a yearlong investigation by the U.S. Department of Commerce. It found that solar manufacturers in these countries unfairly benefited from government subsidies. They sold their products for less than it cost to make them.
The move has caused big shifts in the global solar industry, with solar stocks rallying. It impacts manufacturers, investors, and clean energy goals. Let’s get to know how.
What Prompted the Tariffs?
The investigation began after complaints from a coalition of U.S. solar manufacturers, including Hanwha Qcells, First Solar, Mission Solar, and Meyer Burger. These companies are part of the American Alliance for Solar Manufacturing Trade Committee. They claimed that foreign solar producers were undercutting the U.S. market by dumping cheap products.
The Department of Commerce agreed. They ruled that solar products from four Southeast Asian countries—many owned or backed by Chinese firms—were sold at unfairly low prices. These products also received foreign subsidies.
The solar duties were finalized in April 2025. This came five months after a preliminary decision made during President Joe Biden’s term.
According to the final ruling, some companies received tariffs as high as 3,521%, though the rates vary by country and manufacturer. For example, the highest anti-dumping (AD) and countervailing duty (CVD) rates imposed were:
- Cambodia: up to 125.37% (AD) and 3,403.96% (CVD)
- Malaysia: up to 81.24% (AD) and 168.8% (CVD)
- Thailand: up to 202.9% (AD) and 799.55% (CVD)
- Vietnam: up to 271.28% (AD) and 542.64% (CVD)
These countries are the top importers of solar panel products to the U.S. According to an S&P Global report, the U.S. imported 8.1 GW of solar modules in Q4 2024, 61% of which came from those Southeast Asian nations, excluding Cambodia.
Some companies, such as Hanwha Qcells in Malaysia, received much lower rates. The company received a 0% AD rate and only 14.64% CVD, largely due to its cooperation with the investigation and existing U.S.-based production capacity.
How Did the Market React?
The tariffs caused an immediate reaction in the stock market. U.S.-based solar companies saw their shares climb sharply after the announcement.
- First Solar’s shares jumped about 14%, Sunnova Energy also rose 14%, and SolarEdge Technologies increased by 12%.
Investors viewed the decision as a win for U.S. manufacturers, who now face less competition from low-priced imports.
Industry lawyer Tim Brightbill, who represented the American manufacturers, called the decision a “decisive victory for American manufacturing.” He said it was an important step toward protecting U.S. jobs and rebuilding the country’s industrial base.
Impact on Southeast Asian Manufacturers
Before these tariffs, the four Southeast Asian countries supplied nearly 80% of the solar products imported into the U.S.
That market is now in jeopardy. With the expiration of a two-year tariff waiver in June 2024, many Chinese-owned manufacturers in the region had already started scaling back or relocating operations. Some shifted to countries like Indonesia and Laos, which are not currently affected by the tariffs. But experts warn that these moves may not be long-term solutions, as future tariffs could target those countries as well.
Sharad Somani, head of infrastructure at KPMG Asia Pacific, explained that these tariffs challenge Southeast Asia’s position as a major solar manufacturing hub. He noted that the region’s attractiveness to investors may drop as companies look elsewhere for more stable trade conditions. However, he further noted that:
“South-east Asia could experience indirect upside, as the region’s huge untapped solar resource can leverage potentially excess manufacturing capacity at competitive rates locally.”
Manufacturers in Cambodia were hit especially hard. Two major companies—Hounen Solar and Solar Long—pulled out of the investigation, saying they lacked the resources to continue. Though they denied any wrongdoing, the withdrawal likely contributed to the high tariff rates they received.
Global Supply Chain and Investment Shifts
Tariffs might slow solar manufacturing growth in Southeast Asia. They may also lead global investors to look for options in Europe, India, or the Middle East. With the U.S. market less accessible, producers will need to find new buyers. This could lead to temporary oversupply and falling prices in other regions, which may benefit local solar projects.
In the short term, the U.S. tariffs could disrupt the global solar supply chain. Clean Energy Associates, an energy market research group, warned that the AD/CVD measures could raise the price of solar modules in the U.S. by $0.15 per watt.
Modules made in the U.S. might also rise by $0.10 per watt due to supply bottlenecks. This could cause delays or even cancellations of solar projects, especially those still in planning or financing stages.
In addition, the tariffs are retroactive, meaning companies may be charged duties on past shipments. This uncertainty can make it harder for developers to secure funding or accurately estimate project costs.
This latest trade action reflects a broader shift in U.S. policy under President Donald Trump. His return to office focuses on stronger protectionism. Just weeks before the solar tariff announcement, the Trump administration imposed reciprocal tariffs on imports from about 90 countries.
- SEE MORE: Trump’s New Tariffs Wipe Out $2.5 Trillion: How Can It Stall America’s Clean Energy Future?
SolarBank: Opportunities Amid Tariff Hikes
As tariffs on solar products from Southeast Asia rise, U.S.-based companies like SolarBank Corporation (NASDAQ: SUUN; Cboe CA: SUNN, FSE: GY2) may have new opportunities. SolarBank is a growing company that develops solar energy projects, battery storage, and EV charging solutions across Canada and the U.S. It does not manufacture solar panels but it does import them for its projects. However, SolarBank is not presently importing from any of the four countries that are part of this recent trade action.
The new tariffs will make solar panels from Southeast Asia more expensive. This may increase demand for U.S.-made solar products. Companies like SolarBank, which already have a solid presence in the U.S., can benefit by sourcing local options.
U.S. solar stocks have risen since the tariff announcement, which could help companies like SolarBank. The tariffs also give the company a chance to show how it can reduce risks in the supply chain by focusing on local production instead of relying on overseas manufacturers.
Regarding the recent tariffs, Dr. Richard Lu, CEO of SolarBank Commented:
“We continue to execute on our development pipeline of community solar projects. I also want to comment on the recent announcement of increased tariffs on south-east Asia solar cells and SolarBank’s plans to manage its supply chain.
SolarBank has not been importing solar panels from any of the four countries that are subject to the tariffs announced by the U.S. Department of Commerce on April 21, 2025. As a result its present operations are not affected by this announcement. In addition, SolarBank has been exploring sourcing solar panels from other jurisdictions such as the Middle East and North America, where (domestic assembled) solar panels are becoming cost competitive with the panels imported from Asia. SolarBank also has significant development opportunities in Canada where solar panels are not subject to the same tariffs. Finally, I am expecting that electricity costs will increase in response to these tariffs which will further mitigate the financial impact on projects.
Overall, SolarBank is well positioned to manage this risk.”
With over one gigawatt of projects planned and 100 megawatts already completed, SolarBank is well-positioned to meet the growing demand for U.S.-made solar solutions.
What Happens Next?
The next key milestone is the decision by the U.S. International Trade Commission (ITC), expected on May 20, 2025. The ITC will determine whether the imports have harmed U.S. solar manufacturers. If the ITC agrees with the Commerce Department’s findings, the tariffs will stay in place.
In the meantime, the U.S. solar industry finds itself at a crossroads. While domestic manufacturers celebrate, project developers worry about rising costs and delays. Southeast Asian producers may have to rethink their market strategies and possibly relocate their operations.
As the global solar industry adapts, the effects of this trade decision will likely ripple for years to come. Balancing trade protections with clean energy goals remains a complex challenge—one that countries must carefully manage as they move toward a low-carbon future.
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