KUALA LUMPUR: Malaysia has become collateral damage in a growing trade conflict between the United States and Chinese solar firms operating in Southeast Asia.
According to a Bloomberg report, the US government yesterday imposed new import duties on solar panels from Malaysia and three other countries, accusing them of benefiting from Chinese subsidies and unfair pricing.
Malaysia now faces a blanket import duty of 34.4 per cent, while some Malaysian-linked firms will see even higher rates.
The ruling stems from a US investigation prompted by domestic solar companies concerned about foreign competition undermining their business.
Jinko Solar, which exports from Malaysia and Vietnam, was hit with duties of 40 per cent and 245 per cent, respectively, while Trina Solar and JA Solar also face steep tariffs.
Lobbyists who pushed for this decision claimed the investigation confirmed “what we’ve long known: that Chinese-headquartered solar companies have been cheating the system, undercutting US companies and costing American workers their livelihoods.”
Since the Biden administration, Washington has sought to support American solar manufacturers, many of whom are expanding operations under the Inflation Reduction Act.
However, the decision may hurt Malaysian solar exports and impact jobs in the renewable energy sector.
Analysts say Malaysia’s clean energy ambitions could be slowed as global demand shifts and trade restrictions reshape supply chains.
The US imported more than three-quarters of its solar modules from Malaysia, Vietnam, Cambodia and Thailand last year.
A final decision on whether US producers were truly harmed will come from the US International Trade Commission in the coming weeks.
