After weeks of the solar industry calling for protection from the US government, President Joe Biden has decided to officially veto the measure that sought to reinstate solar tariffs on imports from certain Southeast Asian countries.

The resolution, which passed the House and Senate on bipartisan votes, would have abolished a Commerce Department rule that suspended tariffs on solar panels imported directly from Cambodia, Malaysia, Thailand and Vietnam.

In a letter released by the White House, Biden said that "for too long, because of unfair trade practices and underinvestment in domestic manufacturing, the United States has been reliant on China for solar energy products. From day one, my Administration has bet on America to create a strong solar supply chain. We have worked to create good-paying jobs and build manufacturing facilities in the United States for solar energy and other important global industries - and our plan is working".

The US president also noted that 51 new and expanded solar equipment manufacturing plants have been announced since he took office. And he said the country is now on track to increase domestic solar panel manufacturing capacity eight-fold by the end of my first term.

"But that production will not come online overnight. The Department of Commerce's rule supports American businesses and workers in the solar industry and helps provide sufficient, clean, and reliable electricity to American families, while continuing to hold our trading partners accountable.

Finally, he added that he did not intend to extend the Commerce Department's rule after it expires in June 2024.

Biden explained that "passage of this resolution bets against American innovation. It would undermine these efforts and create deep uncertainty for American businesses and workers in the solar industry".

Industry reaction

Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association (SEIA) explained that "President Biden's veto has helped preserve our nation's clean energy progress and prevented a bill from becoming law that would have eliminated 30,000 American jobs, including 4,000 solar manufacturing jobs. This action is a reaffirmation of the administration's commitment to business certainty in the clean energy sector, and a signal to companies to continue creating jobs, building domestic manufacturing capacity and investing in American communities".