On Monday, U.S. President Joe Biden announced a significant increase in the volume of solar cells that can be imported tariff-free, more than doubling the current limit. This move aims to assist domestic solar panel producers who rely on components manufactured abroad.
The new tariff-rate quota will rise from 5 gigawatts (GW) to 12.5 GW, while the existing tariff rate remains at 14.25%. These tariffs were initially imposed by former President Donald Trump in 2018 under section 201 of the 1974 trade act. The tariffs were designed to shield the nascent U.S. solar manufacturing industry from competition with low-cost imports, primarily from Asia.
In May, the Biden administration indicated it would consider increasing the quota if imports neared the 5 GW threshold. This adjustment is part of Biden’s broader commitment to boosting American manufacturing jobs and advancing his climate change agenda through increased production of clean energy equipment.
