US-China trade tensions hit Southeast Asia’s solar industry, impact EU

US tariffs on Southeast Asian solar panel exports may disrupt Chinese-owned solar companies in the region, complicating the EU’s solar expansion efforts.

David Hutt reports for Deutsche Welle.

In short:

• Southeast Asian solar producers face rising US tariffs, which could reduce solar panel exports to the US.
• Chinese solar firms in the region have scaled back operations, affecting the EU’s solar manufacturing ambitions.
• Some manufacturers are shifting production to other Southeast Asian nations not currently facing tariffs, like Indonesia and Laos.

Key quote:

"Southeast Asian solar panels could flood the EU market as they are squeezed out of the US."

— Indra Overland, head of the Norwegian Institute of International Affairs' Center for Energy Research

Why this matters:

US tariffs could undermine the EU's solar industry by increasing competition from Southeast Asia. These shifts may also reshape global solar supply chains, influencing renewable energy access worldwide.

Related: American solar firms request federal action against Asian competitors