US suspends tariff on Malaysian-made solar panels

US suspends tariff on Malaysian-made solar panels

Imports from Cambodia, Thailand and Vietnam but not China also benefit from the two-year tariff suspension.

The US has announced measures to increase its capacity to produce solar energy. (Bernama pic)
WASHINGTON:
The US is to suspend tariffs for two years on solar panel imports from Cambodia, Malaysia, Thailand, and Vietnam — but not China — as it seeks to boost domestic clean energy manufacturing.

The White House said President Joe Biden’s administration will also invoke the Defense Production Act (DPA) to accelerate domestic production, and use the federal government’s purchasing power to increase demand, a fact sheet said.

China is excluded while the Commerce Department investigates whether certain Chinese companies are circumventing US customs duties by assembling parts in the four countries.

The White House said the US was on track to triple domestic solar manufacturing capacity by 2024, from 7.5 gigawatts to 22.5 gigawatts, enough to enable 3.3 million homes to switch to solar each year.

Monday’s actions include invoking the DPA to force the manufacture of clean energy in key areas including solar parts like photovoltaic modules and module components.

The two-year tariff suspension window meanwhile is intended as a “bridge” to ensure the US has access to sufficient supply of parts to meet electricity generation needs while domestic capacity scales up.

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