Just at the beginning of the week, the USA accused China of unfair competition and took drastic tariffs. Now President Biden’s government is planning further solar imports.
Shortly after increasing US tariffs on Chinese imports, the American government is now also lifting tariff exemptions for certain solar imports. This step is also primarily aimed at China as an economic rival and the second largest economy behind the United States.
US President Joe Biden will close loopholes for imports via third countries and end the tariff exemption for so-called bifacial solar modules, the White House announced. These can not only convert solar radiation from above into electricity, but can also absorb reflected radiation via the back. “The impact of Chinese oversupply on our investments in the solar market remains a difficult issue,” said a US government official.
The proportion of bifacial modules in US imports was once low – but that has now changed drastically. According to the US government, hardly any other solar modules are now being introduced because they are now the dominant technology.
The USA had imposed tariffs on certain solar modules under President Donald Trump, and his successor Biden extended them. However, bifacial solar panels have so far been excluded. They mainly come from Asian countries such as China. But the modules are also produced in European countries such as Germany. The USA is also a major producer.
Other Asian countries also affected
A customs exemption for the import of solar modules from four Asian countries to the USA – Cambodia, Malaysia, Thailand and Vietnam – is also to be ended. The US government argues that China imports solar modules into the US through these countries at dumping prices and thus avoids tariffs.
“Imports of solar panels from Southeast Asia, where Chinese manufacturers were found to be dodging (…) tariffs, have surged over the past year,” the White House said. Biden approved the 24-month tariff exemption two years ago to ensure sufficient supplies. Since then, the production of solar modules in the USA has increased dramatically, according to Washington.
It was only on Tuesday that Biden announced that he would impose special tariffs of 100 percent on electric cars from China – effectively removing them from the US market because this would make the final price too high for the vast majority of car buyers. The US government is also imposing new or significantly increased tariffs on, among other things, solar cells, semiconductors, harbor cranes and medical items such as cannulas and protective masks.
The reason given was that China was flooding the global markets with artificially cheapened exports. The measures are intensifying the trade conflict between the USA and China. With the presidential election approaching in November, China accused Biden of an election campaign maneuver – and threatened consequences.
Source: Stern
