The U.S. government on Tuesday (20th) officially imposed high tariffs on solar cells and modules imported from Cambodia, Malaysia, Thailand, and Vietnam, with some tariffs reaching as high as 3,521%. This move is aimed at protecting U.S. solar manufacturers but may place new pressure on domestic renewable energy development.

The U.S. International Trade Commission (ITC) voted on Tuesday to determine that imports from these four countries are harming the U.S. solar industry, which became the final hurdle for the tariffs to take effect. According to Bloomberg, this decision means the related tariffs will come into effect in June. This is a significant victory for American manufacturers such as Hanwha Q Cells and First Solar, which previously claimed that low-priced imports from Southeast Asia undermined domestic production incentives.

The new tariffs will significantly increase the prices of solar equipment imported from Southeast Asia, posing a challenge for U.S. renewable energy developers reliant on these imports. The U.S. Department of Commerce conducted a year-long investigation last year, finding that some manufacturers in these countries exported to the U.S. at prices below cost, constituting dumping and unfair competition. Some Cambodian companies face punitive tariffs as high as 3,521% for refusing to cooperate with the investigation, while Vietnam's tariff is 396%, Thailand's is 375%, and Malaysia's is relatively low at an average of 34%.

According to BloombergNEF statistics, the U.S. imported about $12.9 billion worth of solar equipment from these four countries last year, representing nearly 80% of total imports. However, in addition to tariff pressures, the renewable energy industry is also facing challenges from certain Republicans in Congress pushing for cuts to federal subsidies, resulting in greater uncertainty for future growth potential. While the tariffs may help protect domestic manufacturing, they could also delay the construction of solar power projects, posing an obstacle to the Biden administration's goals of clean energy and carbon neutrality.