Shares of JinkoSolar plummeted 8.98% on Wednesday after a Bloomberg report that the U.S. government could impose a significantly higher anti-subsidy duty on solar cells and modules imported from the company's affiliates in Malaysia.

The U.S. had preliminarily set a 3.47% countervailing duty rate for JinkoSolar's Malaysia exports. However, a group of domestic solar manufacturers allege there was an error in the calculation, and the actual tariff should be closer to 13%. They have asked the U.S. Commerce Department to amend its preliminary determination and issue a new rate for JinkoSolar and other Malaysian solar exporters.

A potential 13% duty would be a major blow for JinkoSolar, as the U.S. is a key export market. The higher tariffs could significantly impact the company's profitability and competitiveness, which likely contributed to Wednesday's sharp sell-off in the stock.