The US Department of Commerce has announced new tariffs on solar panels and related products from Cambodia, Malaysia, Thailand, and Vietnam. The tariffs target up to 3,521% on some imports. This move is part of a government crackdown on companies allegedly dumping cheap products in the US market and benefiting from Chinese subsidies.
The tariffs vary significantly from company to company across Southeast Asia. One Korean manufacturer operating out of Malaysia faces a notable levy. Four solar companies in Cambodia were hit with the maximum 3,521% rate after stopping their compliance with the investigation into industry practices launched by the Biden administration.
The new tariff announcements have had an immediate positive impact for some US solar companies. First Solar saw its stock price rise by approximately 7% in premarket trading. Sunnova Energy was also up more than 5% at one point.
The tariffs are expected to bolster the competitiveness of US solar panel manufacturers.
Stocks rise on new tariffs
They will reduce the influx of cheap imported panels, which have been undercutting domestic products.
The announcement comes amid a volatile time for other sectors in the economy. Tesla’s stock has surged above its 50-day moving average for the first time since January. This was propelled by positive sentiment around CEO Elon Musk’s renewed focus on the electric vehicle company’s issues.
However, not all sectors are experiencing such positive trends. A notable US trucking company recently experienced a 20% drop in its stock price after posting disappointing earnings. The company’s adjusted earnings per share of $1.86 fell short of the expected $2.76, with revenues also below expectations.
CEO Fritz Holzgrefe attributed the lackluster performance to an uncertain macroeconomic environment and severe weather conditions in the first quarter. Bloomberg Intelligence analysts noted that the company’s challenges underscore the broader economic uncertainties, including changes in tariff policies and demand fluctuations. The ISM Manufacturing Index, a leading indicator for less-than-truckload demand, also fell below 50, signaling contraction and adding to concerns about the economic outlook.
As these sectors navigate through their respective challenges and opportunities, the new tariffs on Southeast Asian solar imports mark a significant shift in the US government’s trade policy and its impact on domestic industries.
