**New US Solar Import Duties May Accelerate Renewable Energy Shift in Southeast Asia**
Proposed US tariffs on solar panels manufactured in Southeast Asia could catalyze the region’s lagging clean energy transition, analysts suggest. The Biden administration recently unveiled plans to impose steep import duties—ranging from 40% to over 3,500%—on photovoltaic products from Cambodia, Vietnam, Thailand, and Malaysia, following claims of unfair trade practices by Chinese-affiliated firms.
These measures, set for final approval in June, would compound existing tariffs on foreign solar components, potentially disrupting a market where Southeast Asia supplies nearly 80% of US solar imports. Chinese manufacturers, which dominate global solar production, had shifted operations to the region to bypass earlier trade barriers. However, experts argue the new levies could redirect their focus toward bolstering renewable infrastructure within Southeast Asia itself.
“The US tariffs may render exports commercially unviable, but they also present a chance for the region to prioritize its own energy transition,” said Putra Adhiguna of the Energy Shift Institute. Southeast Asian nations, criticized for slow progress in replacing fossil fuels, currently rely on coal and gas for over 80% of electricity in some countries. Malaysia, for instance, aims for just 24% renewable energy by 2030—a target deemed insufficient by climate advocates.
Ben McCarron of Asia Research & Engagement noted that Chinese firms, locked out of Western markets, might accelerate investments in local solar adoption, driving policy reforms and infrastructure development. Muyi Yang of Ember added that redirecting production to meet domestic demand could create a resilient regional market, though challenges remain. Countries like Indonesia and India already enforce policies favoring homegrown solar manufacturing, complicating efforts to absorb surplus supply.
While the US tariffs threaten short-term export revenues, analysts emphasize the long-term potential for Southeast Asia to harness its solar capacity, reduce fossil fuel dependence, and align with global climate goals—if governments prioritize regulatory support and grid modernization.
Source: Original Source