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Biden extends Trump’s solar tariffs, but loosens some

Framed by the Manhattan skyline electricians with IBEW Local 3 install solar panels on top of the Terminal B garage at LaGuardia Airport on Nov. 9, 2021, in the Queens borough of New York. President Joe Biden has decided to keep many of the tariffs his predecessor, Donald Trump, had imposed on imported solar panels while ending a few. (AP Photo/Mary Altaffer, File)

By MATTHEW DALY
Associated Press

WASHINGTON (AP) — President Joe Biden on Friday extended tariffs imposed by former President Donald Trump on most solar panels imported from China and other countries. But in a nod to his efforts to combat climate change and boost clean energy, Biden excluded tariffs on some panels used in large utility projects.

Biden said he will keep for four more years tariffs that were imposed by Trump on imported solar cells and panels, but he exempted so-called bifacial solar panels that can generate electricity on both sides and are now used in many large solar projects. The technology was still emerging when the tariffs were first imposed by Trump.

“By excluding bifacial panels, we will ensure that solar deployment continues at the pace and scale needed to meet the president’s ambitious climate and clean energy targets and create good jobs at home,” Biden said in a statement. Along with clean-energy provisions in his still-stalled “Build Back Better” initiative, the actions on solar power “will enable us to rebuild a sustainable, competitive, and technologically-advanced domestic solar industry,” Biden said.

Biden also doubled an import quota on solar cells — the main components of panels that go on rooftops and utility sites — to 5 gigawatts, allowing a greater number of imported cells used by domestic manufacturers. The U.S. does not currently produce solar cells, and the administration wants to make sure domestic suppliers “do not have to pay a tariff on a key input for their manufacturing process,” a senior administration official said Friday.

The cells come from places like Vietnam or Malaysia — not China, the official said. “There is no reason to think that making the (import quota) larger will somehow help China,” the official said, a claim that some U.S. solar manufacturers disputed. The official spoke on the condition of anonymity because they were not authorized to comment publicly.

Biden faced a choice among competing constituencies on solar power, a key part of his climate and clean-energy agenda. Labor unions support import restrictions to protect domestic jobs, while the solar industry relies in large part on cheap panels imported from China and other countries, including Vietnam, Malaysia and Singapore.

The American Clean Power Association, a renewable energy group representing both installers and manufacturers, praised the administration’s decision, calling it “a win for jobs and a win for the President’s climate agenda.”

Biden’s decision to extend the tariffs on monofacial solar cells and modules “gives the domestic solar manufacturing industry four more years to adjust to import competition as intended by the statute,” said Heather Zichal, the group’s CEO. She is a former energy adviser to President Barack Obama.

Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, which represents solar installers, said she was disappointed with the decision to extend the tariffs on imported solar cells and panels, but said Biden “arrived at a balanced solution in upholding the exclusion for bifacial panels and increasing the tariff rate quota for cells.”

“Today’s decision recognizes the importance of this innovative technology in helping to improve power output and lower costs in the utility segment. It is a massive step forward in producing clean energy in America and in tackling climate change,” Hopper said.

Trump approved tariffs on imported solar-energy components in 2018, saying his administration would always defend American workers and businesses from unfair competition. The tariffs were initially set at 30% and later cut to 18% and then 15%. They were set to expire on Sunday without action by Biden.

Under Biden’s decision, tariffs will be set at 14.75% and gradually be reduced to 14%.

Since the tariffs were imposed, solar-panel production in the U.S. has tripled. A Chinese company and a Korean company set up factories in the United States and an American firm, First Solar Inc., expanded domestic production.

Mark Widmar, chief executive of Arizona-based First Solar, said his company was “deeply disappointed” at Biden’s decision to exclude bifacial panels from tariffs.

The exclusion tilts the playing field to China and other large producers “by providing unlawfully subsidized bifacial panels an instant, artificial advantage over other panel types,” Widmar said. The advantage given to bifacial panels is not based “on real-world performance or true competitiveness, but merely on distinguishing where the cells happen to be located on the panel,” he said.

Since China dominates bifacial panel production, “this decision effectively allows China to outflank American efforts to grow self-reliant solar supply chains,” Widmar said.

Copyright 2022 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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