As Trump's tariffs become, the solar industry in Southeast Asia faces devastation | Climate crisis

Bangkok, Thailand – A short text message informs Chonlada Siangkong that she has lost her job at a solar cell factory in the area, East Thailand.

The factory operated by Standard Energy Co, a subsidiary of Singapore giant Gstar Gstar, closed its doors last month in anticipation of the tariffs of the United States President Donald Trump for the export of solar panels from Southeast Asia.

From Monday, the customs and border protection of the United States will begin to impose tariffs ranging from 375 percent to over 3500 percent on imports from Thailand, Cambodia, Vietnam and Malaysia.

Criminal liabilities introduced in response to suspected unfair commercial practices from Chinese -owned factories in the region have raised questions about the ongoing viability of sunshine trade in Southeast Asia, the source of about 80 percent of the solar products sold in the United States.

Like thousands of other workers in Thailand and throughout the region, Chonland, a 33-year-old mother, is suddenly facing a more uncertain future against the background of trade repression.

“We were all shocked. The next day we were told not to come to work and we would not pay for compensation,” Chonland told Al Jazeera.

US officials say Chinese manufacturers have used Southeast Asia countries to eat tariffs for China and “throw out” cheap solar panels in the US market, harm their business.

US Trade employees have appointed Jinko Solar, Trina Solar, Taihua New Energy Houn, Sunshine Electric Electric Energy, Runergy and Boviet – all of whom have major operations in Thailand, Malaysia, Cambodia or Vietnam.

The US Thai sun exports cost more than $ 3.7 billion in 2023, just behind Vietnam at $ 3.9 billion, according to the latest US trade data.

The Standard Energy Co facility of $ 300 million in Rayong has been working for less than a year, producing its first solar cell at a large fanfare in August.

“I am puzzled by what has just happened,” said Kanyu, a production line manager at Standard Energy, who asked to be named only on his name, “said only to Al Jazeera.

“The new machines have just landed and we almost didn't use them, they are also very expensive – a few million baht for each machine. They have also ordered tons of raw materials that are waiting to be produced.”

Ben McCarren, managing director of Risk Consultancy Asia Research & Angagement, said the manufacturers of Southeast Asia face a serious hit from the US turning to protectionism.

“There are suggestions that production may come out entirely from Southeast Asia if the tariffs are introduced either on a blanket or which specifically deal with the production capacity owned by the Chinese,” McCarren told Al Jazeera.

“The consequences are important to these countries; Thailand, Vietnam, Cambodia and Malaysia represent about 80 percent of the US solar imports in 2024,” McCarren said, adding that “some manufacturers have already begun to exclude and move from the region.”

Unjust advantage

US employees and businesses have accused China of giving its solar companies a disloyal advantage on the market with subsidies.

China was the largest financier of clean energy in Southeast Asia between 2013 and 2023, pouring $ 2.7 billion into projects in Indonesia, Malaysia, the Philippines, Thailand and Vietnam, according to zero Carbon Analytics.

The US Sun Energy Committee, a seven -player coalition, was one of the strongest voices to lobby to a sharp rise in the taxes on Chinese imports.

Without withdrawing from the notorious unpredictable Trump, companies affected by the tariffs have a little resorting to the opportunity to file an appeal once a year or after five years after a sunset review clause comes into force.

Some observers believe that the sector may never recover.

“Not only did the low -qualification work have been affected by the trade war;

“Even if you make a lot of savings, solar cell exporters will still have to reduce these qualified workers.”

Others perceive more views, arguing that once the dust settles, Chinese solar companies will stimulate the delivery of products needed to achieve regional emissions.

While Thailand, Cambodia, Malaysia and Vietnam have partly welcomed the Chinese solar companies due to the large sums of previous investments that are offered, they all also strive to satisfy more than their energy needs with cleaner sources.

Before Trump took office in his tariff program, Thailand announced plans to become neutral with carbon by 2050 and produce greenhouse gas emissions with zero up to 2065.

“The slowdown (or stopping) of solar exports as a result of US tariffs can recharge the efforts of markets in Southeast Asia by Chinese solar companies that view the region as a critical and well -arranged destination for green technology,” McCaren said.

“The remaining delivery from export delay can be absorbed from the domestic markets in Thailand, Malaysia, Cambodia, Vietnam, especially if governments use the situation as a profitable opportunity to quickly accelerate political initiatives that stimulate internal solar energy.”

For solar companies in Southeast Asia, survival will also depend on governments that reduce bureaucracy and loosening the control of oil and gas monopolies over the energy mix.

At the same time, the exclusion of the United States from solar imports to Southeast Asia can prevent the transition to greater energy into the best economy in the world.

“The production of solar cells in Thailand is heavily managed by exports and the United States has historically been a major export destination,” Pavida Pananond, Professor of International Business Business School in Bangkok, told Al Jazeera.

But solar tariffs will “harm US consumers and the green transition in the United States as prices are higher.”