US Senate Approves to Restore Tariffs on Solar Panels

The United States Senate voted to restore the suspension of tariffs by Southeast Asian countries on solar panels from Chinese companies. President Joe Biden previously initiated the suspension.

Repealing Suspension

After President Joe Biden temporarily halted tariffs on solar panels, the US Senate passed a vote of 56-41 to reinstate tariffs as high as 254% on solar panels from Chinese companies in Southeast Asia. According to Reuters' report, tariffs have been known to come into the country in violation of trade rules.

Biden is expected to veto the measure, with a two-thirds majority of the lawmakers in both houses would be needed to override him. While the president is a Democrat, this measure was heavily supported by Democrat Senators.

Nine of the 56 who were in favor of this measure were Democrats, joining the group of Republicans towards this effort. This sets up a clash between the Biden administration as the president initiated to halt tariffs in an effort to ensure that the country had an adequate supply of solar panels in the fight against climate change.

Among the countries that previously waived tariffs on solar imports were Malaysia, Cambodia, Thailand, and Vietnam. This was supposed to last for two years, implemented last June after solar project developers noted that they would increase their costs and halt the development of its offerings.

Electrek reported while this might help to protect US solar manufacturing, reinstating tariffs might be harmful to solar installation. Especially that the reason why Biden waived the tariff was that manufacturing is nowhere near robust enough to supply the huge demand for solar projects.

Solar developments are needed as soon as possible as we do not have much time to delay the fight against climate change. By reinstating tariffs, it will boost costs for US solar developers and slow down the supply chain.

Critics' Response

The New York Times reported that the president's move was criticized by a lot as for them, he failed to defend the American workers. This includes Democrat Senator of Ohio Sherrod Brown who stated, "Now we are sending a clear message that we must level the playing field for workers and manufacturers in Ohio and across the country."

Meanwhile, Republican Senator Marco Rubio stated that if the president really cares about American jobs, the environment, and countering China, he will sign this into law without any hesitations.

In a statement from Solar Energy Industries Association (SEIA) President and Chief Executive Officer Abigail Ross Hopper that this measure failed America's 255,000 solar workers and put the near-term impact at risk. Through this measure, it will impose $1 billion in retroactive tariffs, causing approximately 30,000 people to lose their jobs this year.