Waaree, Premier Energies Rally After US Announces Tariffs Up To 3521 Per Cent On Southeast Asian Solar Imports

Shares of solar equipment manufacturing companies Waaree Energies and Premier Energies rallied up to 8 per cent on April 22 after the US slapped tariffs on imports of solar panels from Southeast Asian countries.

Waaree Energies shares gained as much as 7.56 per cent to hit the day’s high at Rs 2,629 apiece on the NSE, extending a rally for the eighth straight session. The stock rallied 25.66 per cent during this period.

Premier Energies shares jumped up to 8 per cent to Rs 1,090 per share on the NSE. For this counter too, today is the eight consecutive day of gains, rallying over 29 per cent during this period.

Waaree, Premier Has Significant Exposure In US

Both Waaree – India’s largest manufacturer of solar photovoltaic (PV) modules – and Premier Energies, backed by Washington DC-based GEF Capital, have significant exposure in the US solar markets.

Premier Energies was the largest Indian exporter of solar cells to the US in FY24, with exports worth $31.2 million. Exports to the US made up 8.77 per cent of their revenues for FY24.

For Waaree Energies, exports in FY24 contributed 58 per cent of its annual revenue, of which US accounted for a large portion of this revenue.

Higher tariffs on India’s Southeast Asian peers mean that the demand for solar equipment could shift to other countries, of which Indian solar companies who have wide exports to US could potentially benefit.

Cambodia Faces The Highest Tariffs

The US Department of Commerce proposed the tariffs on Cambodia, Thailand, Malaysia, and Vietnam. Some solar equipment exporters in Cambodia are facing the highest duties of 3,521 per cent.

This comes in response to the allegations by American producers that Chinese companies in those countries were dumping solar cells and panels in the US at unfairly low prices, allegedly due to Chinese subsidies.

According to a BBC report, many Chinese firms have shifted their operations to Southeast Asia in recent years to avoid tariffs imposed during US President Donald Trump's first term.

The proposed tariffs were announced just days after Chinese President Xi Jinping returned from his visit to Vietnam, Malaysia, and Cambodia.

In FY24, these four countries together exported $12.9 billion worth of solar equipment to the US. This represents 77 per cent of total solar module imports by the US, according to BloombergNEF.