US Democratic Senator urges the government to continue to suspend tariffs on photovoltaic modules
According to foreign media reports, Democratic Senator Jacky Rosen of Nevada recently called on other Democratic senators to join her in opposing a joint opposition resolution proposed by Republican senators. The resolution plans to overturn a two-year moratorium on tariffs on photovoltaic modulesimported from four countries in Southeast Asia issued by US President Biden.
In an undisclosed memo sent to Democratic lawmakers, Rosen pointed out that if the administrative order to suspend tariffs on photovoltaic modules in these countries is overturned, it may cause a devastating impact on the U.S. photovoltaic industry.
This joint resolution was proposed by Florida Republican Senator Rick Scott on February 16th under the U.S. Congressional Review Act. Seven other Republican senators and Scott jointly sponsored the resolution.
The United States Department of Commerce has decided to impose new tariffs on photovoltaic modules imported from Malaysia, Vietnam, Thailand, and Cambodia after conducting an investigation. The two-year ban on imposing tariffs on imported photovoltaic modules has effectively prevented this measure. The US government is trying to provide more time for the country's photovoltaic industry exhibition, while establishing a domestic photovoltaic supply chain, continuing to import photovoltaic products from these countries and regions.
In December last year, the US Department of Commerce stated that it had preliminarily determined that photovoltaic modules imported from these countries had evaded tariffs on photovoltaic modules manufactured in China, which had caused a blow to the US photovoltaic industry. The final decision of the US Department of Commerce is expected to be made on May 1st this year.
While proposing the resolution on February 16th, Scott, along with Florida Republican Senator Bill Posey, wrote to the Secretary of Commerce and the Secretary of Defense of the United States to lift the ban. According to reports, the photovoltaic system on a high-altitude balloon that entered the United States from the end of January to the beginning of February is likely to be a photovoltaic module made in China.
However, industry insiders pointed out that unless there is any change, the order issued by President Biden of the United States to suspend the collection of tariffs will continue until June 2024.
According to the data released by Wood Mackenzie, a consulting agency, the installed capacity of photovoltaic systems installed in the United States in 2021 and 2022 has declined because photovoltaic developers are committed to responding to the supply constraints caused by the investigation of the U.S. Department of Commerce, the implementation of the Forced Labor Prevention Act, and the overall impact of the COVID-19 on the global supply chain.
However, after the passage of the Inflation Reduction Act, the demand for photovoltaic projects in the United States increased in 2022, which included tax credits to encourage renewable energy projects. Rosen stated in the memorandum that the resolution they opposed would undermine the incentives provided by the Inflation Reduction Act and prevent the US photovoltaic market from obtaining crucial photovoltaic modules and batteries.
Rosen pointed out that American photovoltaic module manufacturers are currently only able to meet 15% of domestic demand.
Although U.S. photovoltaic module manufacturers such as First Solar are making large-scale investments to rapidly expand their business, industry insiders suspect that even if tariffs are suspended for two years, U.S. manufacturers will not have enough time to expand.
In an interview with industry media last December, Rob Jetty, Chief Operating Officer of Distributed Photovoltaic Development Company, stated that it is simply impossible to establish a strong domestic photovoltaic supply chain within two years, and its production capacity cannot meet the needs of photovoltaic projects that photovoltaic developers plan to install within this period of time.
Rosen pointed out in the memorandum that the suspension of tariffs is a prudent compromise to allow for a transition period, and the resolution proposed by misguided Republican lawmakers will break the delicate balance between supply and demand in the US photovoltaic industry.
