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New Straits Times
25-05-2025
- Business
- New Straits Times
US tariffs could cost Malaysia up to 4pct of solar panel export value
KUALA LUMPUR: Malaysia could lose up to four per cent of the export value of its solar panels if the United States (US) proceeds with its proposed tariffs on solar panel product imports, according to industry observers. Earlier this week, the media reported that the US International Trade Commission (US ITC) had determined that US domestic solar panel makers were materially harmed or threatened by a flood of cheap solar panel imports from four Southeast Asian nations, namely Malaysia, Thailand, Cambodia and Vietnam. "A 'yes' vote by the three-member US ITC means the Commerce Department will issue orders to enforce countervailing and anti-dumping tariffs on solar products imported from the four countries," the report said. UOB Kay Hian Wealth Advisor head of investment research Mohd Sedek Jantan said that the tariffs could lead to a loss of billions in export revenue, noting that global photovoltaic (PV) trade exceeded US$40 billion (US$1=RM4.23) in 2021. He said, assuming a 30 per cent demand reduction (based on trade elasticity), Malaysia could see a significant decline in export earnings, severely affecting the solar sector. To mitigate the impact, Mohd Sedek suggested that Malaysia adopt a Geoeconomic Hedge Strategy by diversifying its export markets to regions such as Europe, India, and Latin America. This strategy helps countries, companies, and investors manage risks arising from geopolitical and economic instability, particularly in areas such as global trade, supply chains, and investment flows. He pointed out that over-reliance on a single major market, especially one prone to protectionist trade policies, creates significant vulnerability for Malaysian manufacturers. "The solar industry is a major part of the energy sector, which contributes nearly 20 per cent to Malaysia's gross domestic product (GDP). "As such, it is highly advisable for the country to diversify its solar panel export markets beyond the US due to the ongoing high tariffs," he told Bernama recently. Meanwhile, industry player Itramas Corporation Sdn Bhd believes that while the company could be significantly affected by the US tariff hike, the effect could be cushioned by revenue from its renewable energy (RE) projects in Malaysia. "However, we think that Bank Negara Malaysia might potentially lower the interest rates if there are signs of recessionary stresses or shocks. "In this scenario, the ringgit will weaken against the US dollar, which would affect us negatively as our technology components are purchased in the US currency," said managing director Lee Choo Boo. Lee emphasised that it is extremely important that Malaysia move up the value chain and reduce its dependence on imported technologies. "In the RE sector, we must be steadfast and stay the course of local supply chain development and not just focus on constructing power plants based on the purchase of foreign technology components," he added.
Malay Mail
25-05-2025
- Business
- Malay Mail
US tariff threat puts up to 4pc of Malaysia's solar export value at risk, prompting calls for market diversification
KUALA LUMPUR, May 25 — Malaysia could lose up to four per cent of the export value of its solar panels if the United States (US) proceeds with its proposed tariffs on solar panel product imports, according to industry observers. Earlier this week, the media reported that the US International Trade Commission (US ITC) had determined that US domestic solar panel makers were materially harmed or threatened by a flood of cheap solar panel imports from four South-east Asian nations, namely Malaysia, Thailand, Cambodia and Vietnam. 'A 'yes' vote by the three-member US ITC means the Commerce Department will issue orders to enforce countervailing and anti-dumping tariffs on solar products imported from the four countries,' the report said. UOB Kay Hian Wealth Advisor head of investment research Mohd Sedek Jantan said that the tariffs could lead to a loss of billions in export revenue, noting that global photovoltaic (PV) trade exceeded US$40 billion (US$1=RM4.23) in 2021. He said, assuming a 30 per cent demand reduction (based on trade elasticity), Malaysia could see a significant decline in export earnings, severely affecting the solar sector. To mitigate the impact, Mohd Sedek suggested that Malaysia adopt a Geoeconomic Hedge Strategy by diversifying its export markets to regions such as Europe, India, and Latin America. This strategy helps countries, companies, and investors manage risks arising from geopolitical and economic instability, particularly in areas such as global trade, supply chains, and investment flows. He pointed out that over-reliance on a single major market, especially one prone to protectionist trade policies, creates significant vulnerability for Malaysian manufacturers. 'The solar industry is a major part of the energy sector, which contributes nearly 20 per cent to Malaysia's gross domestic product (GDP). 'As such, it is highly advisable for the country to diversify its solar panel export markets beyond the US due to the ongoing high tariffs,' he told Bernama recently. Meanwhile, industry player Itramas Corporation Sdn Bhd believes that while the company could be significantly affected by the US tariff hike, the effect could be cushioned by revenue from its renewable energy (RE) projects in Malaysia. 'However, we think that Bank Negara Malaysia might potentially lower the interest rates if there are signs of recessionary stresses or shocks. 'In this scenario, the ringgit will weaken against the US dollar, which would affect us negatively as our technology components are purchased in the US currency,' said managing director Lee Choo Boo. Lee emphasised that it is extremely important that Malaysia move up the value chain and reduce its dependence on imported technologies. 'In the RE sector, we must be steadfast and stay the course of local supply chain development and not just focus on constructing power plants based on the purchase of foreign technology components,' he added. — Bernama
Epoch Times
21-05-2025
- Business
- Epoch Times
US to Add Tariffs to Solar Cell Imports From Southeast Asia
The U.S. International Trade Commission (USITC) said on May 20 it has The American Alliance for Solar Manufacturing Trade Committee had brought the challenge before the USITC in April 2024 against solar cells imported from Cambodia, Malaysia, Thailand, and Vietnam, arguing that China-backed solar companies manufacturing in Southeast Asian countries were dumping products onto the American market.
Yahoo
16-04-2025
- Business
- Yahoo
Duties coming on aluminum containers from China following US trade ruling
This story was originally published on Packaging Dive. To receive daily news and insights, subscribe to our free daily Packaging Dive newsletter. The United States International Trade Commission has determined there is harm to U.S. industry from imports of disposable aluminum containers, pans, trays and lids from China, saying in an April 11 announcement that these items are sold in the U.S. at less than fair value and subsidized by China's government. The Aluminum Foil Container Manufacturers Association applauds USITC's decision. The association and member companies including Durable Packaging International, Handi-foil Corp. and Reynolds Consumer Products filed a complaint in May 2024 that drove the federal government to launch its investigation. Next, the U.S. Department of Commerce will issue antidumping duty orders and countervailing duty orders on imports of these products from China. The federal government receives antidumping and countervailing duty petitions on an ongoing basis and launches probes accordingly. These trade investigations and duties are separate from the other tariffs the Trump administration has announced recently, such as country-specific reciprocal tariffs, and the new duties will be added onto any others. USITC plans to publicly post its full report about the aluminum container determination by May 26. 'The International Trade Commission's determination will provide much-needed relief to domestic producers of disposable aluminum containers that were losing sales and being forced to lower their prices to compete with extremely low-priced imports from China,' John Herrmann, counsel to AFCMA, said in a news release. After this initial case is official and documented, AFCMA's attorneys will file a new complaint to prompt USITC to investigate Chinese companies circumventing U.S. duties by transshipping their aluminum foil containers through other countries in southeast Asia, an AFCMA spokesperson said via email. Thailand and Vietnam especially are under the microscope for this transshipping, with import data from the last few months showing a 'significant increase' in aluminum foil container imports from those two countries, the spokesperson said. U.S. distributors also have reported that they're importing these products from alternative countries to avoid duties, the spokesperson said. The Aluminum Association also has spoken out against other metal tariff circumvention via transshipping. For instance, the association has denounced certain Mexican brewers' and can makers' use of Chinese aluminum sheet for cans that contain beer, which the U.S. then imports. It says recent Trump administration tariffs on aluminum cans and beer imports address that issue. The group was not directly involved in the countervailing and antidumping case for aluminum containers. However, 'we appreciate the government's finding that imports of certain aluminum containers and trays harm the domestic industry,' said President and CEO Charles Johnson in an email. 'As our industry and several third parties have long documented, the government of China continues to provide massive subsidies to its aluminum sector which distorts global markets and encourages unfair trade.' Recommended Reading Aluminum cans, beer imports subject to 25% tariffs Sign in to access your portfolio
Yahoo
14-04-2025
- Business
- Yahoo
USITC rules Chinese imports of aluminium containers harmful to US industry
The US International Trade Commission (USITC) has delivered its final unanimous verdict that imports of disposable aluminium containers from China have caused material harm to American manufacturers. The products in question include pans, trays, lids, and other disposable items. This decision comes in response to petitions submitted by the country's Aluminium Foil Container Manufacturers Association (AFCMA) and some of its member companies. The investigations were launched following the formal complaint lodged on 16 May 2024. The USITC's ruling marks the conclusion of this phase of the trade proceedings, paving the way for action involving trade remedies. In this next stage, the US Department of Commerce is expected to issue antidumping and countervailing duty orders. These measures are likely to be published within the coming weeks. They are intended to address pricing practices and state subsidies tied to Chinese imports. The goods under scrutiny comprise disposable containers mainly manufactured from flat-rolled aluminium. Typical uses of these containers include food preparation, baking, and reheating, as well as barbequing, takeaway services, and storage. The USITC's conclusion affirms the alleged adverse impact of these imports on domestic production. AFCMA is represented by John Herrmann, Paul Rosenthal, Joshua Morey, and Matthew Pereira of Kelley Drye & Warren. Herrmann said: 'Our work, however, is not done. Chinese exporters are quickly moving presses to, and illegally transhipping disposable aluminium containers through, third countries. 'AFCMA and its members are closely monitoring these developments and are preparing to take actions later this month to ensure the unfair trade orders are aggressively enforced by the US Commerce Department and US Customs and Border Protection.' Last month, AFCMA endorsed the US Department of Commerce's final determinations on disposable aluminium container imports from China. "USITC rules Chinese imports of aluminium containers harmful to US industry" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
