President Biden on Tuesday vetoed a bipartisan resolution that would reverse last year’s executive order that told the Commerce Department not to impose tariffs on Chinese solar panel makers for two years.
Biden described the bill, which recently passed the House and Senate with Democratic backing, as “a bet against innovation in America.” Last year, Mr. Biden implemented a 24-month moratorium on solar panel avoidance tariffs designed to protect U.S. companies, prompting the White House to invest in domestic solar panel capacity. said.
“Passing this resolution is a bet on American innovation,” Biden said in a statement Tuesday. “It would undermine these efforts and create deep uncertainty for U.S. businesses and workers in the solar industry. Therefore, I veto this resolution.”
Biden added that he “has no intention” of extending the tariff suspension when the 24-month tariff moratorium expires in June 2024.
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In June 2022, President Biden suspended tariffs on Chinese solar panels for two years. Congress passed a resolution rescinding the suspension. (Ting Shen/Bloomberg, Getty Images | CFOTO/Future Publishing, Getty Images)
The president’s executive action in June 2022 comes after the Commerce Department announced months ago it would conduct an investigation. whether it is a Chinese manufacturer In order to avoid US tariffs, solar panels were shipped via Southeast Asian countries. And in December, the agency released preliminary findings showing that four major solar companies had shipped their products through Cambodia, Malaysia and Vietnam to avoid tariffs.
The Department of Commerce is expected to release its final findings later this month.
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Following the December findings, a bipartisan group of lawmakers led by Rep. Bill Posey (R-Florida) and joined by Rep. Dan Kildee (Michigan) called for Biden’s actions in January. It submitted a resolution condemning it, arguing that the tariffs were unjustified. It is necessary to protect the fledgling US solar industry. dwarfed by Chinese industry. Senator Rick Scott (R-Florida) introduced a joint bill co-sponsored by Democratic Senator Joe Manchin.
The resolution, which takes advantage of the Congressional Review Act that allows Congress to reverse federal regulation, was passed by the House of Representatives on April 28 by a vote of 221 to 202, and by the Senate on May 3 by a vote of 56. Passed with 41 votes in favor.
Solar panels at the ENGE Sun Valley Solar project in Hill County, Texas, March 1, 2023. (Mark Felix/AFP via Getty Images)
“I am disappointed that President Biden has vetoed this important bill,” Mr Kildee said on Tuesday. “Failure to stand up to those engaged in unfair trade practices hurts American workers and manufacturers. can never compete in the world.”
“The president’s position and today’s veto fail to hold China accountable and hurt the American worker,” he continued. “Congress passed this bipartisan resolution with strong Republican and Democratic backing. Now that the President has vetoed this bill, Congress will without delay vote again to override today’s veto. should.”
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Overall, Chinese companies account for more than 80% of the global solar panel industry and dominate the supply chain at all stages of product manufacturing, according to the International Energy Agency.Chinese photovoltaic industry tied to forced labor Located in Xinjiang, China.
The resolution was supported by tariff advocacy groups such as the American Prosperity Coalition and human rights groups such as the Uyghur Human Rights Project. Environmental groups and green energy groups such as the Solar Energy Industries Association (SEIA) opposed this.
“This move reaffirms the administration’s commitment to business certainty in the clean energy sector and provides jobs to businesses,” said Abigail Ross Hopper, president and CEO of SEIA. “It’s a signal to continue building domestic manufacturing capacity and investing in American society.” In response to Biden’s veto on Tuesday.
