WASHINGTON (AP) — President Joe Biden on Tuesday vetoed a congressional resolution that would have reinstated tariffs on solar panel imports from Southeast Asia, settling for now a long-running dispute over whether to punish China for trade violations that bypass U.S. rules limiting imports of cheap solar panels from Asia.
The result of Biden’s veto is that a two-year delay on tariffs will continue until at least June 2024.
Lawmakers from both parties have expressed concerns about what they call unfair competition from China, which has long dominated the global market for manufacturing solar panels. Some U.S. manufacturers contend that China has essentially moved operations to four Southeast Asian countries — Thailand, Vietnam, Malaysia and Cambodia — to skirt U.S. anti-dumping rules.
A Commerce Department inquiry last year found likely trade violations involving Chinese products and recommended steep penalties. Biden halted tariffs for two years before the Commerce investigation was completed, saying his action was needed satisfy demand for renewable energy while providing “certainty” for the solar supply chain and solar installation market.
The mere threat of up to $1 billion in retroactive tariffs and higher fees led to delays or cancellations of hundreds of solar projects across the U.S. last year. Solar installations are a key part of Biden’s agenda to fight climate change and achieve 100% clean electricity by 2035.