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US-China relations
WorldUnited States & Canada

US Senate votes to restore tariffs on solar panels from Southeast Asia, in Biden rebuke

  • The legislation creates political risk for the president, as it is bound up with concerns about US dependence on China for clean energy materials
  • At issue is a finding that Chinese manufacturers are circumventing US duties by assembling equipment in countries like Cambodia, Thailand, Malaysia and Vietnam

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Solar panels are seen in on farmland in Thurmont, Maryland. Photo: AP
Bloomberg

The US Senate voted on Wednesday to reinstate tariffs as high as 254 per cent on solar panels from Southeast Asia, underscoring a deep clash over continued US reliance on imports to drive the nation’s renewable-energy development.

With the Senate’s 56-41 vote, the measure now heads to President Joe Biden, who has vowed to veto it and preserve the tariff moratorium he established that runs through early June 2024.

Still, nine Democrats joined Republicans in voting to end that reprieve, highlighting continued bipartisan wariness of the administration’s plan to insulate US renewable development from trade risks.

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The legislation creates political risk for the president, because it is bound up with concerns about US dependence on China for the critical minerals used in the electric vehicles, solar panels and other equipment vital to the clean-energy transition.

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Huge solar farm at Mexico City market being built with 32,000 panels from China

Huge solar farm at Mexico City market being built with 32,000 panels from China

House Republicans are expected to hold a vote to override Biden’s planned veto, even though the chamber did not muster the two-thirds majority necessary to overcome his rejection when it passed the measure last week.

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