Biden rejects bill to reinstate tariffs on Chinese solar panels.

President Biden Keeps Promise to Veto Legislation Reversing Tariffs on Solar Panels from China

President Joe Biden has followed through on his promise to veto legislation that would reverse his temporary suspension of tariffs on some solar panels from China. In a message to the House, Biden stated that the passage of this resolution would bet against American innovation and create deep uncertainty for American businesses and workers in the solar industry.

Bipartisan Support for Joint Resolution of Disapproval

The bill, a joint resolution of disapproval, received bipartisan support in both the House and the Senate. It targets a rule from the Commerce Department in September 2022, which specified that tariffs would be suspended for 24 months on panels made in China that undergo final assembly in Cambodia, Vietnam, Thailand, and Malaysia. This came during an investigation by the Commerce Department into alleged tariff evasion by companies that manufacture solar cells and other components in China.

Biden’s Multi-Pronged Strategy to Stimulate Domestic Solar Power Industry

In his veto message, Biden said he won’t extend the tariff suspension. He argued that it is part of a multi-pronged strategy to stimulate the domestic solar power industry, including new solar panel factories. A Korean firm in January announced its intentions to site production in Georgia, promising over $2.5 billion in spending in the United States.

Federal Agents Raid Facilities of China’s Jinko Solar Holdings Co., Ltd.

The U.S. solar forecast may not be so sunny for other players. Just days ago, federal agents raided Florida and California facilities of China’s Jinko Solar Holdings Co., Ltd. Biden’s veto message reads, “The Department of Commerce’s rule supports American businesses and workers in the solar industry and helps provide sufficient, clean, and reliable electricity to American families, while continuing to hold our trading partners accountable.”

House and Senate Need Two-Thirds Majorities to Overcome Veto

The House and Senate would both need two-thirds majorities to overcome the president’s veto. This veto is just the third of Biden’s presidency, which began under a fully Democrat-controlled Congress. After the midterm elections, the legislative branch split between the Republican-run House, now targeting the Biden family’s alleged ties to Chinese money, and the narrowly Democratic Senate.