Biden administration doubles tariff-free solar cell import quota

The Biden administration has more than doubled the volume of solar cell imports that would be allowed into the United States tariff-free to help solar module manufacturers rely on imported materials.

Tariffs on solar cell imports were introduced by former President Donald Trump to protect small US solar manufacturers from competition from cheaper materials imported from Asia.

The Biden administration is now increasing the so-called tariff quota (TRQ) on imports of certain crystalline silicon photovoltaic (CSPV) cells, not partially or fully assembled into other products. Those tariff-free amounts are now up to a total of 12.5 gigawatts (GW) from 5 GW previously, the White House said in a proclamation.

For quantities exceeding the volumes allowed by the TRQ, the tariff is currently at 14.25%.

In the fall of 2023, a majority of the U.S. solar manufacturing industry petitioned to amend the safeguard tariff measure by eliminating the tariff quota and providing tariff-free treatment for all imports of CSPV cells or, alternatively, increasing the tariff. TRQ from 5 GW to 20 GW annually, White House said.

“The petition explains how domestic industry has continued to make a positive adjustment to import competition. It also explains that the estimated domestic production of modules, together with the current lack of sufficient domestic production of cells, will require local module manufacturers to rely on imports in the short term, above the current 5 GW under the tariff quota” , said the US Administration. .

After considering the petition and an interim monitoring report from the United States International Trade Commission (USITC), President Joe Biden “determined that estimated domestic production of modules and associated imports of CSPV cells have increased such that modification is necessary the action. taken… by extending the tariff quota to unchanged amounts within the 12.5 GW quota,” according to the White House.

By Charles Kennedy for Oilprice.com

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