(Reuters) – President Joe Biden Boosts Solar Cell Imports to Aid U.S. Producers
President Joe Biden has taken a significant step to support domestic panel producers by more than doubling the volume of solar cells allowed to be imported tariff-free. The White House announced on Monday that the tariff-rate quota on solar cells will increase to 12.5 gigawatts from 5 GW, with the current tariff rate set at 14.25%.
These tariffs were initially imposed by former President Donald Trump in 2018 under section 201 of the 1974 trade act to protect the small U.S. solar manufacturing sector from competition with low-priced imports primarily from Asia.
In May, the Biden administration indicated that it would consider raising the quota if imports approached the 5 GW level. Part of Biden’s agenda includes revitalizing American manufacturing jobs by producing clean energy equipment to support his climate change goals.
Analysis:
President Joe Biden’s decision to increase the volume of solar cell imports tariff-free is a significant move to support domestic panel producers in the U.S. This action aims to protect the small U.S. solar manufacturing sector from competition with low-priced imports, particularly from Asia. By boosting the quota to 12.5 gigawatts from 5 GW and maintaining a tariff rate of 14.25%, Biden is aligning with his commitment to promote clean energy equipment production and create more American manufacturing jobs. This decision can potentially have a positive impact on the domestic solar industry and contribute to the country’s efforts in combating climate change.