US Senate Votes to Lift Biden’s Solar Panel Tariff Pause

Facts

  • The US Senate on Wednesday voted 56-41 to reinstate tariffs that Pres. Joe Biden last year paused on solar panels from several Southeast Asian countries, with nine Democrats voting in favor and only one Republican against the measure.1
  • Biden is expected to veto the measure, which passed the House last week, and it's unlikely to garner enough support to override that veto.2
  • Using the Congressional Review Act, the legislation would end the moratorium on new tariffs for solar cells and modules from Malaysia, Thailand, Cambodia, and Vietnam.3
  • Currently, the Commerce Department is looking into whether Chinese companies are using those four countries to get around US tariffs. A preliminary finding in December found that circumvention was occurring; however, a final report is due later this year.3
  • If the moratorium, which is set to last until June 2024, is rescinded, some tariffs are predicted to reach as high as 254%.4

Sources: 1Associated Press, 2Reuters, 3POLITICO, and 4Yahoo News.

Narratives

  • Establishment-critical narrative, as provided by Washington Free Beacon. Biden and the legislators who voted against lifting the moratorium are proving again that they’re bought and sold by China. The administration has rushed to provide subsidies for green energy while China — taking advantage of the suspension — dominates the solar market. Instead of penalizing Beijing for cheating, the president continues to reward it while the US plays catch-up.
  • Pro-establishment narrative, as provided by Environment + Energy Leader. In order to prevent environmental catastrophe, the US must rapidly move toward renewable energy sources. Since it’ll take time for domestic production of clean energy technologies to get up to speed, this moratorium makes sure that there’s plenty of material available for the renewables industry in the interim.

Predictions