US Imposes Up to 3521 Percent Tariff on ASEAN Solar Panels Sparking Backlash from China’s Biggest Trade Partners

The United States has dropped a tariff bomb, targeting solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam with duties reaching as high as 3521%. This move, passed through a formal U.S. Trade Commission vote, is aimed at cutting off China’s indirect access to the U.S. market via Southeast Asia. But Washington may have underestimated the blowback.

Among the most affected is Cambodia, where some manufacturers now face a cost increase of more than 35 times the product’s value. Vietnam gets hit with an average rate of 396%, Thailand with 375%, while Malaysia receives the lowest hike at 34%. These extraordinary penalties are set to be enforced starting June.

The real message is political. Former President Trump, who is again a leading figure in U.S. politics, clearly intends to force the global solar supply chain back to American soil by disrupting China’s export routes. But the tactic has triggered fierce resistance.

Vietnam wasted no time. On the same day the tariffs were announced, Hanoi warned Washington it would pivot towards markets like Europe and India. It also signed 45 cooperation deals with China, including projects in chips, railways, and clean energy.

Thailand delayed its tariff talks with the U.S. and instead leaned closer to Beijing, emphasizing long-term cooperation. Malaysia, enjoying recently signed pacts with China, shows no sign of retreat. Even Cambodia, despite being the hardest hit, deepened its strategic partnership with China days before the U.S. decision.

Now, ASEAN nations are signaling a united front, threatening countermeasures. That’s bad news for U.S. tech giants like Apple and Microsoft, which rely heavily on Southeast Asian supply chains.

Since 2020, ASEAN has surpassed the EU to become China’s top trade partner. Trade has flourished, climbing from $443.6 billion in 2013 to $911.7 billion in 2023, with an average annual growth rate of 7.5%. In just the first four months of 2025, bilateral trade hit $93.52 billion, up 8.1% year-on-year.

ASEAN’s six key markets—Vietnam, Malaysia, Thailand, Singapore, Indonesia, and the Philippines—are driving this growth. Vietnam, for example, saw a 10.7% rise in trade with China in early 2025. Malaysia continues its robust economic engagement, with $68.3 billion in bilateral trade. Thailand has seen a surge in exports, especially in durian and electronics, and Indonesia’s trade volume jumped 11.1%, thanks to rising smartphone and auto imports from China.

Despite Washington’s heavy-handed strategy, ASEAN’s deep integration with China is undeniable. As the region mobilizes against the tariffs, the U.S. risks isolating itself from one of the world’s most dynamic trade corridors.