As he sought to accelerate progress towards his climate change-fighting goals, President Joe Biden issued emergency measures Monday. He also declared a two year tariff exemption for solar panels from Southeast Asia.
The Commerce Department investigation into possible trade violations with Chinese products led to industry groups complaining that he invoked the Defense Production Act and other executive actions. The White House’s actions caused solar companies to gain ground on Wall Street.
In March, the Commerce Department announced that it was examining solar panels imported from Thailand, Vietnam and Malaysia. It is concerned that these products are not complying with U.S. antidumping rules, which limit imports from China.
When Karine Jean-Pierre, White House press secretary, was asked if Biden’s pause on tariffs was not a gift for China, Jean-Pierre replied that he invoked the Defense Production Act “to ensure that he’s delivering to the American people.”
Jean-Pierre stated, “He is putting all the force of the federal government behind support American clean energy producers.”
White House officials stated that Biden’s actions are intended to increase domestic production for solar panel parts, building materials and other components, including cells used in clean-energy-generated fuels. The administration supported the Commerce Department investigation and U.S. trade laws, but called the suspension of tariffs on imports from Thailand and Vietnam.
In May, Gina Raimondo, Commerce Department Secretary, told a Senate panel that the solar inquiry follows a process that is not allowed to consider climate change, supply chains, or other factors. Monday, she stated that she is still committed to protecting our trade laws and making sure American workers are able to compete on an equal playing field.
Raimondo stated in a statement that the president’s emergency declaration “ensures America’s families have reliable and clean electricity, while also ensuring we can hold our trading partners responsible for their commitments.”
The investigation, which could lead to retroactive tariffs up to 240%, has been a warning from clean energy leaders for years. This would cause thousands of layoffs and threaten up to 80% in planned solar projects across the country.
The department counters by stating that imports exceeding 200% would not be subject to rates above 200% for solar products. These rates are usually applied to companies that are not cooperative and cannot distinguish themselves from China’s government and Communist Party.
Advocates argue that any punishment could have jeopardized Biden’s top clean-energy goals and run contrary to his administration’s push towards renewable energy like wind power.
