Solar Firms Dance Away From Tariffs

Chinese solar firms are shifting production to avoid U.S. tariffs. As new tariffs target Vietnam, Malaysia, Thailand, and Cambodia, companies are ramping up operations in places like Indonesia and Laos. These new sites are expected to supply roughly half of the solar panels used in the U.S. last year.

China's dominance in the global solar market continues, accounting for about 80% of worldwide shipments.

Despite a decade of tariffs aimed at reducing this reliance, U.S. solar imports have only increased, reaching a record $15 billion last year.

Chinese firms like Trina and Longi are scaling down production in Vietnam, where tariffs have risen to over 300% for some, while rapidly expanding new plants in Indonesia and Laos to maintain their U.S. market share.

In the U.S., tariffs remain a hot topic in the upcoming election, with some lawmakers pushing for stricter enforcement on Chinese exports.

Meanwhile, Chinese firms are also investing in U.S. solar manufacturing plants to benefit from local incentives, which will add around 20GW of capacity within a year, enough to meet half of U.S. demand.