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Regulation
The new anti-dumping and countervailing duties( AD / CVD) on Southeast Asian cells and modules, ranging from 41.08 percent for Malaysia to 660.04 percent for Cambodia, and the threat of several new tariffs are likely to create genuine supply bottlenecks and unprecedented challenges for renewable energy deployment. The AD / CVD investigation finalized in June 2025 on Cambodia, Malaysia, Thailand, and Vietnam have pushed tariff rates on these countries above Chinese levels. Tariff escalation will push these suppliers to reroute the supply chain for the PV modules to other Asian countries and Europe, adjusting their investment and inventory, both. Although domestic manufacturing capacity in the US has seen significant growth, it still lacks sufficient upstream capabilities that will impact the procurement lead time.
Likewise, the inverter market exhibits a marked distinction between the residential and utility-scale sectors. Manufacturers within the residential inverter segment have largely transitioned to domestic production. Conversely, the utility-scale sector remains heavily reliant on imported goods, making it vulnerable to possible price increases that may escalate by up to 30 percent. The US imported solar invertors majorly from China at $ 2.8 billion, Japan at $ 1.1 billion, Mexico at $ 2.5 billion, Vietnam at $ 1.5 billion, and Thailand at $ 2.2 billion in 2024, respectively. The imposition of these tariffs is anticipated to increase the costs of US utility-scale solar projects by approximately ten percent, primarily due to a surge of around 30 percent in the prices of modules and inverters. This development is expected to hasten the growth of domestic manufacturing; however, it may concurrently lead to supply limitations and heightened price volatility.
What lies ahead?
The roadmap to renewables deployment in the US seems to progress at a slower pace citing tariffs uproar and policies reversal. Tariffs have driven up the costs of renewable energy projects, disrupted supply chains, hindered new investment, and slowed the clean energy transition both domestically and worldwide by inflating the prices of key components such as solar panels and wind turbines. Although these tariffs are intended to stimulate domestic manufacturing, they have resulted in project delays, heightened uncertainty, and increased expenses for companies dependent on imported parts and materials. The repercussions extend beyond the US, adversely affecting countries that rely on these components and contributing to greater instability in global clean energy markets.
The US has chosen a path of industrial policy ‒ IRA backed by a protectionist trade policy ‒ tariffs. The success of this approach hinges on its ability to rapidly scale its domestic industry to lower costs and ensure supply, and at the same time navigate geopolitical friction without derailing global climate cooperation. The coming years will be a crucial test whether the US can successfully balance being a climate leader and an economic competitor simultaneously. ■
Rehaan Aleem Shiledar www. globaldata. com
Rehaan Aleem Shiledar is a Senior Analyst at GlobalData’ s Power division. Rehaan is a mechanical engineer by profession with experience in project management of thermal power plants. Rehaan’ s research work at GlobalData focuses on the industry reports in power, and expert insights on the ongoing power market trends and consulting projects.
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