Trump Increases Tariffs on Solar…Again
On October 10th the White House announced the results of the Section 201 midterm review via Presidential Proclamation. The conclusions are disappointing, but not unexpected, and SEIA will consider all of our options in responding.
The President:
revoked the exclusion for bifacial modules (with tariffs being applied to bifacial modules beginning October 25, 2020);
modified the February 2021 tariff step down rate from 20% to 18%, versus the previously announced step down from 20% to 15% (effective February 7, 2021); and
authorized the Office of the U.S. Trade Representative (USTR) to initiate an investigation to extend the tariffs beyond four years.
The President also appears to have taken action regarding the tariff rate quota on cells but has not yet provided specific information on this issue.
With regard to a potential extension of the tariffs beyond four years, upon USTR’s request, the U.S. International Trade Commission (USITC) will conduct a formal investigation to determine whether the tariffs should be extended, similar in process to the 2019 midterm review investigation. If the Commission determines that the tariffs should be extended, they will issue a recommendation to the President, who will then have sole authority on whether to extend the tariffs.
As to the bifacial exemption, while SEIA’s work to delay its reversal saved the industry hundreds of millions of dollars, it seemed inevitable that the President would eventually repeal it. SEIA will continue to explore all options for preserving the exclusion.
Since the administration first imposed solar tariffs, SEIA has suggested many, more constructive, ways to expand U.S. manufacturing, including targeted tax policy and suggestions for growing the whole solar supply chain in a way that would meaningfully create jobs and fuel the economy. In addition, SEIA published a white paper with ideas for boosting the U.S. solar manufacturing economy. SEIA will ramp up our education efforts on Capitol Hill and be talking with leaders in the next administration, regardless of who is president, about the harm of solar tariffs in the context of the COVID pandemic, a threatened economy and a critical need to address climate change.
If your company is interested in getting involved in our strategy and campaign to respond to the proclamation by joining the SEIA Trade Council, contact the Membership team at membership@seia.org. Together, we have mitigated some of the effects of the tariffs, but there is no doubt they have harmed our industry. Your willingness to write letters, show up at rallies, contribute financially and tell your stories have made a difference. We may well be calling upon you again in the coming months. Thank you for your continued engagement with SEIA.