The United States has slapped steep new tariffs, up to 3,521%, on solar panel imports from Southeast Asia, just days after Chinese President Xi Jinping wrapped up a visit to the region where he emphasised regional unity. The decision, announced Monday by the Trump administration, follows a yearlong investigation that found Cambodia, Vietnam, Malaysia, and Thailand were unfairly gaining from government subsidies and selling solar panels to the U.S. at prices lower than what it costs to make them.

Even though American solar manufacturing has been growing, thanks in part to Biden’s Inflation Reduction Act and a surge in demand, U.S. producers are worried. They fear their new factories won’t survive if foreign companies keep undercutting prices with heavily subsidised, below-cost solar equipment.

Tim Brightbill, co-chair of Wiley’s international trade practice and the  lead counsel for the association of solar companies, called the outcome “a decisive victory for American manufacturing.” He also said the investigation's results confirm “what we’ve long known: that Chinese-headquartered solar companies have been cheating the system, undercutting US companies and costing American workers their livelihoods.”

The U.S. Commerce Department announced that Cambodia now faces massive duties of 3,521% after pulling out of a U.S. trade investigation. As reported by Bloomberg, the U.S. imported $12.9 billion worth of solar equipment last year, which is now being hit hard by broad trade policies introduced during Donald Trump’s presidency. In addition, unnamed companies in Vietnam could be subjected to tariffs as high as 395.9%, while Thailand has a standard rate of 375.2%.

Malaysia’s overall tariff rate stands at 34.4%. Jinko Solar faces tariffs of about 245% on products exported from Vietnam and 40% on those from Malaysia. Trina Solar is encountering tariffs as high as 375% for exports from Thailand and over 200% for those from Vietnam. JA Solar may face tariffs of around 120% on modules shipped from Vietnam. This situation follows Xi’s previous visit to Malaysia, where he urged Asian countries to unite in opposing geopolitical tensions, unilateral actions, and protectionist policies.

“In the face of shocks to the current international order and economic globalisation, our two nations will stand united with other countries in the region to jointly resist the undercurrents of geopolitical and camp-based confrontation, overcome the countercurrents of unilateralism and protectionism, and safeguard the promising prospects for development in our shared Asian home,” stated Xi at an event with Malaysian Prime Minister Anwar Ibrahim.