Reuters reports that Chinese-backed solar panel manufacturers in Indonesia and Laos have rapidly increased their share of the US market following the imposition of steep tariffs on imports from Vietnam, Malaysia, Thailand, and Cambodia.
The US finalised additional duties in April after two earlier rounds in June and November 2024, aimed at curbing what it described as unfair trade practices by mostly Chinese-owned factories in those four Southeast Asian countries.
In response, Chinese firms ramped up production in Indonesia and Laos, significantly boosting exports to the US.
According to Reuters’ analysis of US trade data, Indonesia’s and Laos’ combined market share rose from under 1% in 2023 to 29% in the three months after the latest tariffs.
Yana Hryshko, head of global solar supply chain research at Wood Mackenzie, comments:
“All solar manufacturing capacity in the four Southeast Asian countries hit with high tariffs would now likely be shut down or reduced dramatically.”
Dropping imports
US imports from the penalised nations dropped 33% in the nine months following the initial June tariffs, while imports from Indonesia and Laos grew eightfold.
Overall, solar panel imports to the US have declined by 26%, with the share from the four affected countries dropping from 82% in 2024 to 54% after the November measures.
Despite rising import costs, US solar cell imports have tripled. Cells from Indonesia and Laos alone have surged by 17 times, making up 28% of imports since June, up from 6.5% in 2023.
Fei Chen of Rystad Energy cites concerns that tariffs could expand:
“Several solar manufacturers plan to set up production bases in non-Southeast Asia regions such as Turkiye, Oman, Saudi Arabia, UAE, Ethiopia,” says
Meanwhile, Chinese exports have shifted toward Asia and Africa. Asia now accounts for 37% of Chinese solar exports, up from 25.4% in 2024, while Europe’s share has dropped to 34%, according to Ember.
