Malaysia being targeted as US plans massive solar energy tariffs on China, South-east Asian countries
Bloomberg reported that the US is planning to significantly raise tariffs on four countries in particular that are seeing massive growth in the sector, namely Malaysia, Thailand, Vietnam and Cambodia with even higher tariffs for China. — Reuters pic
Wednesday, 21 Aug 2024 9:41 AM MYT
KUALA LUMPUR, Aug 21 — South-east Asia’s solar industry boom could be threatened by looming US tariff hikes as the US and EU attempt to check China’s trade ambitions.
Bloomberg reported that the US is planning to significantly raise tariffs on four countries in particular that are seeing massive growth in the sector, namely Malaysia, Thailand, Vietnam and Cambodia with even higher tariffs for China.
The four South-east Asian countries currently account for more than 40 per cent of solar module production capacity outside China, with many Chinese firms setting up facilities in the region.
BloombergNEF predicts that the US will raise tariffs by around 30 to 50 per cent on South-east Asian solar producers while China could see a hike to 50 per cent from the current 25 per cent.
While Chinese solar energy companies are actively seeking alternative markets besides the US, they have also had to grapple with a domestic glut and many companies in China have either shut down or are closing overseas facilities.
Still, some Chinese manufacturers are playing the wait and see game, pausing their plans until the new tariffs are announced to consider moving facilities to countries such as Indonesia and Laos instead who are not considered tariff hike targets.
The coming US election could also influence tariffs as US Democrats could decide to raise tariffs sooner if it would help boost their chances.
Wednesday, 21 Aug 2024 9:41 AM MYT
KUALA LUMPUR, Aug 21 — South-east Asia’s solar industry boom could be threatened by looming US tariff hikes as the US and EU attempt to check China’s trade ambitions.
Bloomberg reported that the US is planning to significantly raise tariffs on four countries in particular that are seeing massive growth in the sector, namely Malaysia, Thailand, Vietnam and Cambodia with even higher tariffs for China.
The four South-east Asian countries currently account for more than 40 per cent of solar module production capacity outside China, with many Chinese firms setting up facilities in the region.
BloombergNEF predicts that the US will raise tariffs by around 30 to 50 per cent on South-east Asian solar producers while China could see a hike to 50 per cent from the current 25 per cent.
While Chinese solar energy companies are actively seeking alternative markets besides the US, they have also had to grapple with a domestic glut and many companies in China have either shut down or are closing overseas facilities.
Still, some Chinese manufacturers are playing the wait and see game, pausing their plans until the new tariffs are announced to consider moving facilities to countries such as Indonesia and Laos instead who are not considered tariff hike targets.
The coming US election could also influence tariffs as US Democrats could decide to raise tariffs sooner if it would help boost their chances.
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kt comments:
Just the Wankee way of "free trade & healthy competition" - if wankee cannot compete, then they
"punish, prohibit and prosecute" to make America great.
Malaysia, Thailand, Vietnam all export Billions upon Billions of US Dollars of goods to USA, mostly with minimal problems.
ReplyDeleteThe problem only arises because these countries have allowed China to set up Screwdriver Factories that have near 99.9% content from China with local input just turning a few screwdrivers, being used to circumvent US tariffs.
Ain't all those US multinationals using the same tactics to sapu-clean the profit generated from these screwdriver factories they have setup in all the 3rd world/developing countries?
DeleteThese China Screwdriver Factories masquerading as Made in Malaysia /Thailand /Vietnam are just a form of Fraud, and they deserve to be Effed by the Wankees "punish, prohibit and prosecute" on these types of Solar Exports.
DeleteFor Malaysian Law, these factories need a Manufacturing License approved by MITI, so the Malaysian Government is likely complicit in the Fraud.