In a major move aimed at protecting domestic manufacturers, the United States has announced steep tariffs of up to 3,521% on solar panels imported from Southeast Asia. The decision follows an investigation that found some Chinese companies were routing their products through countries like Vietnam, Malaysia, Thailand, and Cambodia to avoid existing duties.

The US Department of Commerce concluded that these companies were circumventing anti-dumping and countervailing duties originally placed on Chinese solar products. As a result, tariffs will now be imposed on imports from certain manufacturers operating in Southeast Asia, particularly those linked to Chinese firms.

This decision could significantly impact the solar industry. Southeast Asia currently supplies around 80% of the solar panels used in the United States. Many US solar developers warn that the high tariffs could lead to price increases, delays in projects, and a slowdown in the country’s clean energy transition.

However, US solar panel manufacturers welcome the move, stating that it levels the playing field and supports domestic production. “This is a long-overdue step to stop unfair trade practices,” said a spokesperson from a US solar manufacturing group.

The tariffs are expected to vary by company, with the highest rate—3,521%—targeting specific firms found to be the worst offenders. Other companies that cooperated with the investigation may face lower tariffs or exemptions.

This move comes amid rising global tensions over clean energy technology and trade. It highlights the ongoing struggle between promoting renewable energy and enforcing fair trade practices.

The new tariffs are scheduled to take effect later this year, giving companies time to adjust supply chains or apply for exemptions if eligible.