Biden rejects bipartisan bill to reinstate tariffs on Chinese solar panels.

President Biden Vetoes Bill to Restore Tariffs on Chinese Solar Panels

President Joe Biden has vetoed a bill that would have restored tariffs on Chinese solar panels sold out of Cambodia, Malaysia, Thailand, and Vietnam. The waivers to the four Southeast Asian countries, granted by Biden in June 2022, are due to be in place for two years. Imports from these countries make up around 80 percent of U.S. solar panel supplies.

Biden’s decision to grant the waivers is aimed at creating a “bridge” while U.S. manufacturing ramps up enough to supply the domestic projects needed to achieve goals in fighting climate change. In a statement explaining only the third veto of his presidency, Biden said the waivers would help ensure “we have a thriving solar installation industry ready to deploy American-made solar products to homes, businesses and communities across the nation.” Biden said he does not intend to extend the waivers after their expiration.

Disagreement Among Congressional Democrats

Many congressional Democrats, however, disagree with that argument. Nine Senate Democrats voted to restore the tariffs earlier this month, with Sen. Sherrod Brown (D., Ohio) saying a lack of tariffs on Chinese panels forces American companies to compete with “cheap, unfairly subsidized imports.” Domestic manufacturers have said the tariffs are needed now to compete with cheap panels made overseas.

Congress Lacks Votes to Override Veto

Congress appears to lack the votes to override Biden’s veto, with two-thirds majorities needed in the House of Representatives and Senate.

Conclusion

While the decision to grant waivers to Southeast Asian countries has been met with disagreement among some congressional Democrats, President Biden’s veto will stand. The U.S. solar installation industry will continue to rely on imports from these countries for the next two years, with the hope that domestic manufacturing will ramp up enough to supply the industry in the future.