President Joe Biden increased the quota on the quantity of solar cells that can be imported without tariffs for the second time on Monday in a bid to fuel domestic production.
The new proclamation more than doubles the tariff rate quota from the quantity of solar cell equipment needed to generate 5 gigawatts (GW) of solar capacity to the amount needed to generate 12.5 GW, limiting the applicability of the 14.25% tax on solar cell imports put in place by former President Donald Trump in 2018 as a means of protecting U.S. solar manufacturers against Chinese competition. Monday’s proclamation is the second instance of the Biden administration raising the quantity of solar cells that can be imported tariff-free, after the White House raised the quota from 2.5 GW to 5 GW in February 2022.
“Expected domestic module production and associated imports of [crystalline silicon photovoltaic] cells have increased such that it is necessary to modify the action taken in Proclamation 9693… by expanding the [tariff rate quota] to unchanging within-quota quantities of 12.5 GW,” the White House proclamation stated.
NEW: @POTUS takes decisive action to support American #solar module manufacturers by raising the Section 201 tariff rate quota (TRQ) for imported solar cells.
Full statement from @HopperAbby ⤵️ https://t.co/z7Q3ODyKIS
— Solar and Storage Industry (@SEIA) August 13, 2024
The tariff-free quota hike comes after the Biden administration began enforcing anti-circumvention tariffs on solar panels again in June following a roughly two-year pause. The enforcement freeze contributed to a glut of cheap Chinese solar products flooding the U.S. market, creating a challenge for the White House’s goal of establishing a competitive domestic solar industry.
China’s heavy government subsidization of key input materials like raw polysilicon makes it challenging for American manufacturers to remain competitive, despite the large amount of subsidies the U.S. government already provides domestic solar manufacturers.
The White House did not immediately respond to a request for comment.
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