Biden halts tariffs, boosts solar panel production
WASHINGTON — President Biden is invoking the Defense Production Act to increase U.S. manufacturing of solar panels while declaring a two-year tariff exemption on panels from Southeast Asia. He’s attempting to jump-start an industry key to his climate change-fighting goals that advocates say has been disrupted by a federal investigation.
The White House announced Monday that the moves are being implemented using executive actions and presidential proclamations. They follow months of complaints by industry groups, which argue that the solar sector is being slowed by supply chain problems due to an ongoing Commerce Department inquiry into possible trade violations involving Chinese products.
The Commerce Department announced in March that it was scrutinizing imports of solar panels from Thailand, Vietnam, Malaysia and Cambodia, concerned that products from those countries are skirting U.S. anti-dumping rules that limit imports from China.
White House officials said Biden’s actions aim to increase domestic production of solar panel parts, building installation materials, highefficiency heat pumps and other components like cells used for cleanenergy generated fuels. They called the tariff suspension affecting imports from Thailand, Vietnam, Malaysia and Cambodia a bridge measure while other efforts increase domestic solar power production — even as the administration remains supportive of U.S. trade laws and the Commerce Department investigation.
The Commerce Department has defended its investigation. Secretary Gina Raimondo told a Senate panel in May that the solar inquiry is following a process set by law that doesn’t allow consideration of climate change, supply chains or other factors.
Still, clean energy leaders have been warning since then that the investigation — which could result in retroactive tariffs of up to 240% — would severely hinder the U.S. solar industry, leading to thousands of layoffs and imperiling up to 80% of planned solar projects around the country. That could jeopardize one of Biden’s top clean energy goals and run counter to his Democratic administration’s push for renewable energy such as wind and solar power.
Using executive actions comes as the Biden administration’s clean energy tax cuts, and other major proposals meant to encourage domestic green energy production, have stalled in Congress.