A recent tariff exemption for solar panels from certain Southeast Asian countries will increase U.S. dependency on Chinese supply chains and punish domestic manufacturers for abiding by American trade rules and regulations, according to U.S. Reps. Bob Latta (R-OH) and Cathy McMorris Rodgers (R-WA).
“The Biden administration continues to put American manufacturers last, with the latest example being their decision last week to exempt solar panels and components manufactured in Southeast Asia from tariffs,” Rep. Latta said. “This decision gives a pass to China, which uses slave labor and is currently under investigation by the Department of Commerce for circumventing American trade laws.”
The tariff exemption also “directly penalizes American workers, our domestic solar manufacturing industry, and increases the United States’ dependency on foreign nations for our energy needs,” said Rep. Latta. “We must flip the switch on North American energy production instead of pursuing shortcuts to meet arbitrary environmental goals.
“The president should reverse course and allow Commerce’s investigation to proceed,” he added.
Last week, President Joe Biden announced new executive actions to allow solar components from Cambodia, Malaysia, Thailand, and Vietnam to be imported into the U.S. duty-free for two years, regardless of whether they contain Chinese-produced parts that are subject to U.S. tariffs, according to a June 15 letter the lawmakers and 19 of their colleagues sent to Biden.
The lawmakers said the “unprecedented action” will undermine an ongoing investigation by the U.S. Commerce Department to determine whether Chinese solar cells and modules are circumventing antidumping and countervailing duties through these Southeast Asian nations. The Commerce Department investigation began on March 28.
“President Biden is undermining the ongoing investigation by the Department of Commerce into allegations that Chinese solar companies are circumventing lawfully imposed trade penalties on Chinese solar panels,” Rep. McMorris Rodgers said in a written statement. “The Biden administration’s announcement amounts to a two-year amnesty for the Chinese Communist Party for any violations of our trade laws relating to solar panel imports. This action will help China, and harm American solar panel manufacturers and American workers.”
The congresswoman also pointed out that the administration’s expansive use of emergency authorities under the Defense Production Act is actually less about strengthening national security and more about subsidizing an anti-American energy resource agenda.
“Rather than emboldening China and shutting down American resources, President Biden should be prioritizing America’s vast energy and critical mineral resources to lower prices and secure our supply chains,” she said.
Such sentiments were echoed in the lawmakers’ letter, which urged Biden to allow the Commerce Department investigation to “reach its conclusion uninterrupted and without political interference.”
Among the members who joined Rep. Latta and Rep. McMorris Rodgers in signing the letter were U.S. Reps. Michael Burgess (R-TX), Ann Wagner (R-MO), Buddy Carter (R-GA), Troy Balderson (R-OH), and Dave Joyce (R-OH).
“Regardless of the outcome of the [Commerce] investigation, the decision to waive tariffs sends a clear message to our foreign adversaries that our trade enforcement laws will not be upheld by your administration,” they wrote.
“Ultimately, this rush-to-green is coming at the expense of the domestic solar industry, American workers and our energy independence,” wrote the members. “We urge you to reverse your decision to waive tariffs on solar panels that may be manufactured with Chinese components.”