Insights

The United States has intensified its stance on solar energy equipment imports, particularly targeting Chinese manufacturers accused of circumventing tariffs. A recent ruling by the Department of Commerce concluded that several manufacturers in Southeast Asia, including those from Vietnam, Malaysia, Thailand, and Cambodia, have been bypassing U.S. tariffs on Chinese solar products. As a result, these manufacturers will face significant tariffs, ranging from 50% to 250%, starting in June 2024 (opb) (CGEP).

Analysis and inspiration:

Supply Chain Adjustments: To mitigate the impact of these tariffs, U.S. solar companies will need to adjust their supply chains. This might involve sourcing from different countries or increasing domestic production. President Biden's administration has invoked the Defense Production Act to boost domestic solar manufacturing capacity, aiming to reduce dependency on foreign imports

Impact on Clean Energy Goals: The tariffs pose a challenge to the U.S. goal of achieving 100% clean electricity by 2035. The Solar Energy Industries Association has warned that these tariffs could derail progress by increasing project costs and delaying installations 。