Biden makes Solar Import Tariff 50%

joe biden

China Made Solar Panels get 50% Tariff

US President Joe Biden has announced 50% Tariff On Solar Panels this starts a series of tariffs directed towards Chinese goods, including solar cells.

Under Section 301 of the Trade Act of 1974, solar cells – whether assembled or not into modules – tariffs will increase from 25% to 50% this year in a move to “protect againstjoe biden China’s policy-driven overcapacity that depresses prices and inhibits the development of solar capacity outside of China.”

This newly announced tariff on solar cells follows suit on US Secretary of the Treasury, Janet L. Yellen saying in April that the US “wouldn’t want to rule out” protective trade measures to combat overcapacity of solar PV and energy storage manufacturing in China.

The increased tariffs on solar cells could make difficult the procurement of non-US made capacity due to the US facing an imbalance of domestic module capacity versus cells. In a guest blog in December last year, the advisory body, Clean Energy Associates (CEA) highlighted the disparity between module production capacity announced since the passing of the Inflation Reduction Act (IRA) and further upstream capacity to produce materials such as polysilicon.

“While we are still digging into the details, we’re glad to see the Biden administration take a step to strategically re-align 301 tariffs to help onshore US solar manufacturing and support solar manufacturing workers. As America works to build out manufacturing in key clean energy supply chains to reduce the country’s reliance on China’s supply chains, we need to use every tool at our disposal to boost the U.S. solar manufacturing industry,” said Mike Carr, executiveFLPROC-200M director of the Solar Energy Manufacturers for America (SEMA) Coalition.

Another tariff increase directed towards Chinese goods, relates to batteries both for lithium-ion electric vehicle (EV) batteries and non-EV batteries, which you can read more about on our sister site here.

In both instances tariffs will increase from 7.5% to 25%, although the timeframe will be different. For EV batteries this will occur in 2024, while for non-EV batteries it will happen in 2026. Finally, a tariff rate on battery parts will increase from 7.5% to 25% in 2024.






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