Senate controlled by Dems goes against Biden, restores tariffs on Chinese solar panels.
Senate Votes to Reinstate Tariffs on Chinese Solar Panels
The Senate dealt a blow to President Joe Biden on Wednesday by voting to reinstate tariffs on Chinese solar panels sold out of Southeast Asia. Biden has argued that these tariffs would decimate the green energy industry, which relies heavily on Chinese goods. However, nine Democrats joined 47 Republicans in support of Florida Republican senator Rick Scott’s resolution, which reverses a Biden executive order that suspended tariffs on Chinese solar products imported from Malaysia, Vietnam, Thailand, and Cambodia.
Why the Solar Industry Relies on Chinese Goods
China controls more than 80 percent of the world’s solar panel production, leaving the industry reliant on Chinese goods as it rushes to fulfill increased demand spurred by Biden’s pricey green energy subsidies. That reliance, the White House said last month, means Chinese solar panel tariffs would “create deep uncertainty for jobs and investments in the solar supply chain.”
Democratic Support for the Tariff Resolution
While Scott’s resolution received some Democratic support—Sens. Sherrod Brown (Ohio), Tammy Baldwin (Wisc.), and Gary Peters (Mich.) were among the nine Democrats who backed it—the overwhelming majority of Senate Democrats voted to uphold Biden’s tariff suspension. Nevada Democratic senator Jacky Rosen, who is up for reelection in 2024, led the charge against the tariff resolution, which she called a “job killer” that would “stall the American solar industry.”
China’s History of Providing Illegal Subsidies to Solar Energy Companies
China has for years provided illegal subsidies to its solar energy companies, prompting the United States to begin imposing tariffs on Chinese solar panels in 2012. China quickly got around those tariffs by shifting their operations elsewhere—first to Taiwan and then to Southeast Asia. Biden’s Commerce Department in December found that four of China’s top solar panel manufacturers illegally dodged U.S. tariffs through their work in the region, but the companies remained exempt from crippling sanctions thanks to Biden’s executive order.
What’s Next for Chinese Solar Companies?
The president’s Chinese solar tariff suspension is expected to remain in place for the time being—the White House on April 24 said Biden would veto the resolution reversing the suspension, a position that has not changed. Bipartisan support for the tariffs, however, means that Chinese solar companies aren’t in the clear just yet. While Scott’s resolution did not receive enough support to make up a veto-proof majority, the solar industry has expressed concern that the bipartisan appetite for Chinese solar tariffs could lead to additional bills. Republicans could also introduce tariffs as an amendment to a bill that Biden does support, one House Democratic aide warned in an interview with the Washington Post.
Conclusion
The Senate’s vote to reinstate tariffs on Chinese solar panels sold out of Southeast Asia is a major setback for President Joe Biden, who has argued that these tariffs would decimate the green energy industry. While the president’s Chinese solar tariff suspension remains in place for now, bipartisan support for the tariffs means that Chinese solar companies could face additional bills in the future.
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