The U.S. Department of Commerce announced today that it plans to impose high tariffs on solar products from Cambodia, Vietnam, Malaysia and Thailand, with Cambodia facing an astonishing tax rate as high as 3521%. This move is seen as a strike against what are considered unfair trade practices resulting from reliance on "subsidies from non-market economies." The decision still needs to be formally approved by the U.S. International Trade Commission (ITC) in June before it can take effect.

According to the U.S. government statement, this decision stems from an anti-dumping and countervailing duty investigation launched a year ago. The investigation mainly targets companies with production bases in Southeast Asia but with funding, technology, and management support coming from certain Asian countries. These companies are accused of using third-party factories for export to circumvent existing trade restrictions and achieve "origin washing."

The U.S. Department of Commerce pointed out that this is the first time that enterprises receiving "transnational subsidies" have been identified in a countervailing duty investigation. These subsidies are not from the local government but from policy inclinations abroad. Such actions are viewed by the U.S. side as "systematic evasion measures," impacting domestic manufacturers.

Multiple Companies Named; Tax Rates Severe

The proposed targets for taxation include several multinational corporations, including:

  • Cambodian products: Tariff as high as 3521%
  • A large enterprise exporting products from Malaysia: Tariff around 40%
  • The same enterprise exporting products from Vietnam: Tariff about 245%
  • Another enterprise exporting products from Thailand: Tariff over 375%
  • Its Vietnam exports also exceed 200%

Once these tariff rates are officially implemented, they will be叠加 on top of the 10% base tariff imposed earlier this month, forming a multi-layered trade barrier of high intensity. It is expected to have a profound impact on the global solar industry chain.

The U.S. government's statement did not directly mention, but emphasized that Southeast Asia has become a hub for "highly dependent foreign-subsidized manufacturers." Former President Trump mentioned on multiple occasions that some companies avoid existing tariff measures by changing labels after "transit processing." He promised to respond "equivalently" to such behavior.

Data shows that the U.S. imported solar products worth approximately $11.9 billion from related countries in 2023, with a significant portion coming from Southeast Asian production bases considered "transit hotspots."

Meanwhile, under U.S. pressure, multiple Southeast Asian countries have initiated preventive mechanisms to combat this "origin washing" behavior.

  • The Vietnamese government recently ordered enhanced verification of origin sources and import material flows to prevent it from becoming a transit point for foreign capacity input. The government also required the Ministry of Commerce and customs authorities to strengthen reviews of companies with a sudden increase in "origin certificates," enhancing export transparency.
  • This order requires officials from the Ministry of Commerce, customs, and other departments to strengthen supervision and inspection of imported goods to confirm their origin, especially imported raw materials used in production and export. Vietnam will also implement stricter procedures to check factories and supervise the issuance of the "Made in Vietnam" trademark. The document specifically states: particularly those companies suddenly increasing applications for origin certificates. The Vietnamese government website cited Prime Minister Pham Minh Chinh (22) during a meeting in Hanoi, stating that the government trade negotiation team should fully prepare for upcoming tariff negotiations with the United States and ensure that the negotiations do not negatively impact other agreements or markets.

  • Cambodia's Vice Prime Minister Sun Chanthol led the "U.S.-Cambodia Trade and Investment Working Group" held video talks with the U.S. side on the 20th to seek relief from tax pressures. Casey Barnett, president of the American Chamber of Commerce in Cambodia (AmCham), stated that the Cambodian government is currently revising laws to control and prevent other countries from using Cambodia as a transit point to export goods to the U.S.

Analysts believe that if the new tariffs are ultimately implemented, they will reshape the solar industry chain and global export routes. Some companies may be forced to adjust their layouts to avoid profit erosion caused by high tariffs, while policies introduced by Southeast Asian countries will also affect the landscape of more manufacturing sectors.

Original source: https://www.toutiao.com/article/7496252655489024552/

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