KUALA LUMPUR, Oct 2 – The United States Commerce Department has reportedly imposed preliminary duties on solar energy imports from Malaysia and other Southeast Asian countries, citing concerns over government subsidies.
Finance news outlet Bloomberg reported that the duties are intended to protect the US solar industry, as officials believe the imports are benefiting from unfair subsidies that allow them to be sold at lower prices than domestic products.
The countries affected by these preliminary duties include Malaysia, Cambodia, Thailand, and Vietnam, which supply most of the solar cells and modules imported to the US.
Malaysian imports are expected to face 9.13 per cent of tariffs, lower than the initial rate of 14.72 per cent that is currently implemented on local firm Hanwha Q Cells Malaysia Sdn Bhd.
Supporters of the tariffs argue that they will safeguard the US solar manufacturing sector from unfair competition, while critics say the measures could raise costs and disrupt the renewable energy supply chain in the US.
The US has imposed similar duties on solar imports from China in the past, prompting Chinese companies to move their operations to other countries in the region.
Chinese officials have criticised the tariffs, warning that they could slow down the US's clean energy transition and efforts to combat climate change.
The investigation is expected to conclude next year, with the potential for the tariffs to be adjusted depending on the findings.
