How can Cambodia respond to Trump’s Supercharged Solar Tariffs?
The past six months have seen Cambodian manufacturers confront the return of U.S. tariffs, disrupting established export strategies and market positioning.
The first wave hit when the Trump Administration announced that Cambodian goods would be hit with a 49 percent tariff - one of the highest rates applied globally.
The second wave was more targeted but much less likely to be lifted. The Department of Commerce concluded a year-long investigation into four solar exporting countries, saying “that imports of solar cells from Cambodia, Malaysia, Thailand, and Vietnam are being dumped into the U.S. market and receiving countervailable subsidies.”
As a result, solar panels produced by four companies in Cambodia now face a 3,521% tariff - the highest in the region.
Cambodia’s solar exports had already shrunk by almost 60% in 2024 in anticipation of tariffs, and the failure of the companies to participate in the investigation suggests they were largely resigned to their fate.
However, the impacts on Cambodia’s clean energy manufacturing aspirations may be far more profound than any short term pain.
The clean energy transition will be a critical driver of growth this century. The International Energy Agency estimates that clean energy manufacturing will be worth over $2 trillion by 2035, comparable to the crude oil market.
This is an opportunity too important to give up.
Cambodia rapidly needs to find its feat in this new reality. It needs to ascertain where its natural strategic advantages lie - what can it do well, what can it do cheaply and who wants to buy it. As CDRI’s Cambodia New Growth Strategy 2025 made clear, the country’s exceptional growth over the past twenty years was built on one-off benefits - moving workers from agriculture to manufacturing, riding a property boom that’s run out of steam and relying on a successful but narrow set of exports.
If the country is going to meet its goals it must prioritise sectors that can deliver outsized outcomes in the modern economy. Clean energy should be one of these.
So, how can Cambodia respond to the USA solar tariffs?
Firstly, Cambodia needs to decide exactly what components of the clean energy supply chain present natural advantages for the country. It needs to understand where its raw materials, skills and manufacturing base match the needs of the clean energy supply chain.
Secondly, Cambodia needs to be very explicit about its strategic priorities. The clean energy opportunity is huge - Cambodia just needs to find its part by identifying the areas where it can succeed and then realise that potential by bringing together a range of different sectors under a common goal.
Finally, Cambodia needs to be much more proactive in attracting clean energy investment to the Kingdom. Meeting Cambodia’s renewable energy aspirations is just the beginning in this process - we need leaders from across Cambodia to put clean energy manufacturing at the heart of the country’s development.
A key part in this process will be to supercharge diplomatic and investment attraction - making it abundantly clear why Cambodia can play a key role in the clean energy transition and making sure the front door for international investors is wide open.
The USA solar tariffs were a major blow - but they don’t have to be a knockout punch. The clean energy manufacturing prize is simply too important.
About EnergyLab
Founded in 2018, EnergyLab Cambodia is an innovative and efficient not-for-profit organisation working to support the growth of Clean Energy. Since our establishment, we have been recognised by our partners as independent, insightful and resourceful, with a transparent agenda to support Clean Energy.
Address: G1101, GIA Tower, Sopheak Mongkul Street, Koh Pict City, Sangkat Tonle Bassac, Khan Chamkamorn, Phnom Penh, Cambodia
Website: https://energylab.asia/
For media inquiries, please contact:
The first wave hit when the Trump Administration announced that Cambodian goods would be hit with a 49 percent tariff - one of the highest rates applied globally.
The second wave was more targeted but much less likely to be lifted. The Department of Commerce concluded a year-long investigation into four solar exporting countries, saying “that imports of solar cells from Cambodia, Malaysia, Thailand, and Vietnam are being dumped into the U.S. market and receiving countervailable subsidies.”
As a result, solar panels produced by four companies in Cambodia now face a 3,521% tariff - the highest in the region.
Cambodia’s solar exports had already shrunk by almost 60% in 2024 in anticipation of tariffs, and the failure of the companies to participate in the investigation suggests they were largely resigned to their fate.
However, the impacts on Cambodia’s clean energy manufacturing aspirations may be far more profound than any short term pain.
The clean energy transition will be a critical driver of growth this century. The International Energy Agency estimates that clean energy manufacturing will be worth over $2 trillion by 2035, comparable to the crude oil market.
This is an opportunity too important to give up.
Cambodia rapidly needs to find its feat in this new reality. It needs to ascertain where its natural strategic advantages lie - what can it do well, what can it do cheaply and who wants to buy it. As CDRI’s Cambodia New Growth Strategy 2025 made clear, the country’s exceptional growth over the past twenty years was built on one-off benefits - moving workers from agriculture to manufacturing, riding a property boom that’s run out of steam and relying on a successful but narrow set of exports.
If the country is going to meet its goals it must prioritise sectors that can deliver outsized outcomes in the modern economy. Clean energy should be one of these.
So, how can Cambodia respond to the USA solar tariffs?
Firstly, Cambodia needs to decide exactly what components of the clean energy supply chain present natural advantages for the country. It needs to understand where its raw materials, skills and manufacturing base match the needs of the clean energy supply chain.
Secondly, Cambodia needs to be very explicit about its strategic priorities. The clean energy opportunity is huge - Cambodia just needs to find its part by identifying the areas where it can succeed and then realise that potential by bringing together a range of different sectors under a common goal.
“It is not about picking winners but picking the willing - Mariana Mazzucato”
Finally, Cambodia needs to be much more proactive in attracting clean energy investment to the Kingdom. Meeting Cambodia’s renewable energy aspirations is just the beginning in this process - we need leaders from across Cambodia to put clean energy manufacturing at the heart of the country’s development.
A key part in this process will be to supercharge diplomatic and investment attraction - making it abundantly clear why Cambodia can play a key role in the clean energy transition and making sure the front door for international investors is wide open.
The USA solar tariffs were a major blow - but they don’t have to be a knockout punch. The clean energy manufacturing prize is simply too important.
About EnergyLab
Founded in 2018, EnergyLab Cambodia is an innovative and efficient not-for-profit organisation working to support the growth of Clean Energy. Since our establishment, we have been recognised by our partners as independent, insightful and resourceful, with a transparent agenda to support Clean Energy.
Address: G1101, GIA Tower, Sopheak Mongkul Street, Koh Pict City, Sangkat Tonle Bassac, Khan Chamkamorn, Phnom Penh, Cambodia
Website: https://energylab.asia/
For media inquiries, please contact:
- Email: media@energylab.asia