Solar panel manufacturers in Indonesia and Laos − many of which are owned by Chinese companies − have been rapidly gaining market share in the United States, following Washington’s imposition of steep tariffs on imports from Vietnam, Malaysia, Thailand, and Cambodia. 

The move, finalized in April 2025 after two earlier rounds in June and November 2024, targets alleged dumping practices by Chinese-owned factories operating in those countries.

As Chinese firms shift production to countries not yet targeted by U.S. trade barriers, Indonesia and Laos have emerged as the biggest winners. Their combined market share in the U.S. solar module sector soared to 29 percent in the three months following the second round of tariffs, up from less than 1 percent in 2023, according to a Reuters report.

Industry analysts say that much of the solar manufacturing capacity in Southeast Asia was established by Chinese companies specifically to bypass tariffs and supply the U.S. market at premium prices.

"All solar manufacturing capacity in the four targeted Southeast Asian countries will likely be shut down or dramatically scaled back," Yana Hryshko, Head of Global Solar Supply Chain Research at consultancy firm Wood Mackenzie, said.

U.S. imports of solar panels from Vietnam, Malaysia, Thailand, and Cambodia dropped 33 percent year-over-year in the nine months after the first round of tariffs in June 2024. In contrast, exports from Indonesia and Laos surged nearly eightfold in the same period. Following the November 2024 tariffs, their exports jumped even more dramatically − about 17 times higher than before.

Overall, U.S. solar panel imports have declined 26 percent since June 2024, with the combined market share of the four heavily tariffed countries dropping from 82 percent in 2024 to just 54 percent by early 2025.

Meanwhile, solar cell imports − used in module assembly − have tripled since the first round of duties, despite higher costs from targeted countries. Solar cells now make up 28 percent of total U.S. solar imports, compared to just 6.5 percent in 2023.

“Chinese manufacturers are revising their export strategies amid concerns that Indonesia and Laos may also face tariffs in the future,” Fei Chen, a solar research analyst at Rystad Energy, said. “Some are already planning production bases outside Southeast Asia, in places like Turkiye, Oman, Saudi Arabia, the UAE, and Ethiopia, to maintain U.S. market access.”

According to energy think tank Ember, Chinese factories − effectively locked out of the U.S. market for over a decade − have shifted focus to Asia and Africa. In the first quarter (Q1) of 2025, 37 percent of China’s solar exports went to Asia, up from 25.4 percent in 2024, while shipments to Europe declined to 34 percent, down from 41 percent.