Tariffs Lifted on Southeast Asian Solar Products
The Biden Administration announced a 24-month pause for tariffs on imports of solar panel products from Cambodia, Malaysia, Thailand, and Vietnam. Tariffs on imports from China and Taiwan will remain unchanged. Shares of solar energy companies popped on the news.
This comes on the heels of a US Commerce Department probe concerning whether China was circumventing anti-dumping rules by channeling its sales through other southeast Asian countries. The uncertain outcome of the investigation coupled with ongoing supply-chain disruptions stalled out progress in the development of solar energy solutions.
Bridge to Clean Energy
The tariff reprieve was cheered by clean energy supporters. With the spike in world energy prices triggered by Russia’s invasion of Ukraine, criticism of the tariffs has increased. As suppliers are permitted to trade more freely and investment in the space resumes, the White House expects to reduce its carbon footprint.
The Administration has referred to the two-year plan as a bridge serving to boost solar product supply.
Domestic suppliers are unlikely to cheer the plan, as they will face heightened competition from southeast Asia. The Biden administration plans to support these US firms by labeling domestic products with “super preference status.” It will also implement the Defense Production Act to spur US production in the solar space.
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