The U.S. Department of Commerce has announced preliminary duties on crystalline photovoltaic (PV) cells from Cambodia, Malaysia, Thailand, and Vietnam. This move follows investigations into countervailing duties (CVD) stemming from concerns that manufacturers in these countries benefit from unfair government subsidies.

These duties are part of a larger effort to address concerns about unfair government subsidies in these countries.

Here are the preliminary subsidy rates determined by the Department of Commerce for companies in each country:

The U.S. solar industry has experienced a significant surge in imports from Cambodia, Malaysia, Thailand, and Vietnam over the past three years. Imports from Cambodia rose from 799 million watts in 2021 ($218 million) to 6.72 billion watts ($2.31 billion) in 2023.

Malaysia saw growth from 6.19 billion watts ($1.67 billion) in 2021 to 6.76 billion watts ($1.87 billion) in 2023. Thailand’s imports increased from 4.3 billion watts ($1.13 billion) in 2021 to 10.6 billion watts ($3.73 billion) in 2023.

Vietnam followed a similar trajectory, with imports rising from 5.34 billion watts ($1.31 billion) in 2021 to 12.3 billion watts ($3.99 billion) in 2023.

The U.S. International Trade Commission made a preliminary determination in June this year, affirming that imports from Vietnam, Cambodia, Malaysia, and Thailand are injuring U.S. solar manufacturers.

The Commerce Department’s final determination is expected by February 10, 2025, while the ITC’s is scheduled for March 27, 2025. Should both bodies find that unfair subsidies were indeed granted, the final orders will be issued on April 3, 2025.

The preliminary findings highlight significant concerns over the competitive landscape in the U.S. solar market. By potentially imposing CVDs, the U.S. government aims to protect domestic manufacturers from subsidized competition as it continues to build its own domestic solar supply chain backed by IRA incentives.

Last year, the U.S. Department of Commerce identified that Chinese solar manufacturers bypassed U.S. tariffs by routing their operations through subject Southeast Asian countries.