The International Trade Council (ITC) acknowledges US President Joe Biden's recent decision to veto a resolution by Congress seeking to re-establish tariffs on solar panel imports from Southeast Asia. This decision puts to rest an ongoing dispute about whether to penalize China for possible trade violations that circumvent US rules restricting imports of inexpensive Asian-made solar panels.
This move by President Biden maintains a two-year suspension on the tariffs, allowing the continuation of unrestricted solar panel imports until at least June 2024. The decision came amidst bipartisan concerns regarding alleged unfair competition from China, which has been a significant player in the global solar panel manufacturing industry.
A previous inquiry by the US Department of Commerce had discovered potential trade infractions involving Chinese products, leading to the recommendation of harsh penalties. However, President Biden opted for a two-year tariff suspension prior to the completion of the investigation. This was justified as a step towards balancing the need for renewable energy and providing stability for the solar supply chain and installation market.
The specter of retroactive tariffs and higher fees, amounting to nearly $1 billion, had resulted in the postponement or cancellation of multiple solar projects across the US in the previous year. However, Biden's move has been welcomed by the US solar industry, which deemed solar panel imports as vital while solar installations increase to meet the growing demand for renewable energy.
President Biden's decision is seen as a temporary "bridge" to ensure that as new US factories become operational, a thriving solar installation industry will be ready to deploy American-made solar products across the country. The President has expressed his intention to allow the tariffs to resume after the current suspension ends in June 2024.
The ITC will continue to monitor developments related to international trade practices, and will provide support and guidance to its members in navigating these changes.
For more information, please visit the ITC website.
About the International Trade Council The International Trade Council is a non-partisan, global peak-body chamber of commerce, providing resources, networking opportunities, and advocacy across 176 countries worldwide. It works to promote trade and investment growth, ethical business practices, and intellectual property rights protection.
