A photograph taken in Paris on April 8, 2025, captures a symbolic image: a globe with a U.S. flag labeled “tariffs” planted firmly into it, illustrating the global economic unrest following the implementation of sweeping 10 percent U.S. tariffs over the weekend. These tariffs triggered a sharp sell-off in global markets and reignited fears of a worldwide recession.
Adding to the turbulence, the United States on Monday announced plans to impose new tariffs of up to 3,521 percent on solar panels imported from Southeast Asia. This aggressive move targets alleged unfair trade practices by Chinese companies operating through Cambodia, Thailand, Malaysia, and Vietnam.
These proposed tariffs—recommended by the U.S. Commerce Department after year-long anti-dumping and countervailing duty (CVD) investigations—are designed to counteract what the U.S. sees as illegal Chinese government subsidies extended across borders. The final decision will rest with the International Trade Commission (ITC), which is expected to make its determination by early June.
The investigation was initiated following complaints from U.S.-based solar manufacturers, including Hanwha Qcells, First Solar, and Convalt Energy. These companies accused Chinese firms of undercutting the U.S. domestic solar market by shifting production to Southeast Asia to avoid existing tariffs.
The Commerce Department revealed that for the first time in such cases, it found “transnational subsidies”—instances where companies outside of China were still benefitting from Chinese government support.
According to the Commerce Department:
Products from Cambodia could face duties of up to 3,521 percent.
Jinko Solar would face tariffs of 40 percent for exports from Malaysia and approximately 245 percent for exports from Vietnam.
Trina Solar could be hit with duties exceeding 375 percent for Thai exports and more than 200 percent for products from Vietnam.
These new levies would come on top of the blanket 10 percent tariff President Donald Trump imposed earlier this month on a wide range of imports into the U.S.
In 2023 alone, the United States imported roughly $11.9 billion worth of solar panels from the Southeast Asian countries now facing the potential duties, according to official government data.
Meanwhile, as the global economy grapples with escalating trade tensions, world financial leaders are meeting in Washington to discuss possible negotiations and responses to the growing trade wars.
