The decision announced by the US Department of Commerce on the Cambodian solar panel industry could shake up Cambodia’s solar panel production, which is worth more than $800 million.
The US Department of Commerce on April 21, 2025, issued a final decision imposing tariffs on solar panels imported from Cambodia of up to 3,400 percent, the highest ever. Regarding this decision, the Cambodian Ministry of Commerce on the afternoon of April 22, 2025, issued a press release stating that this decision is not related to the implementation of the US government’s retaliatory tariffs announced in early April.
The same source claimed that this was a US action in another case, under the trade investigation into dumping and subsidies on solar panel products. The source claimed that the decision was based on a complaint from a domestic US solar panel manufacturer who was concerned about the price competition of imported solar panels sold in the US market.
The same source continued that this case is not new, as the United States has been conducting an investigation since April 26, 2024, while the Cambodian Ministry of Commerce has been coordinating with the relevant private sector and various state institutions to clarify the above allegations.
According to the ministry’s press release, the new tax on Cambodian solar panel products may affect a number of companies, including Solarspace, Jintek, Hounen Solar, Solar Long PV-Tech, ISC Cambodia etc.
The Ministry of Commerce did not elaborate on how this decision would affect the Cambodian solar panel industry, but in 2024, Cambodia exported more than $800 million worth of this type of product to the US and other markets.
Analysts said Cambodia likely knew about the project in advance and therefore tried to avoid serious impacts on the industry. According to statistics, Cambodia’s total solar panel exports in 2023 were much larger than those in 2024, when they totaled more than $2 billion.
Regarding the tariffs on solar panels, according to a report by Nikkei Asia, the action announced by the United States on April 21, 2025, does not only target Cambodia, but also Chinese solar panel manufacturers in Southeast Asia.
The Japanese newspaper claimed that the countries affected by the new tariffs on solar panel products are Cambodia, with the highest rate, followed by Thailand at 972 percent, Vietnam at nearly 814 percent, and Malaysia at about 250 percent.
