DENVER, CO, USA, June 6, 2022 – The White House and Department of Commerce have confirmed that President Biden will use executive action to suspend any duties that would have applied to solar cells and modules from Southeast Asia under the anti-circumvention investigation for up to 24 months. This means that duties will not be applied to cell and module imports from Cambodia, Malaysia, Thailand, and Vietnam that arrive in 2022, 2023 and part of 2024, and will eliminate the risk of retroactive tariffs during the same timeframe. However, the anti-circumvention investigation will continue and any duties that are applied will take effect on cells and modules imported after this 24-month period ends, which we expect in June 2024.

This executive action will immediately open up module supply from the four named countries, and due to pent-up demand, there could be a temporary surge in imports. Along with a fall in prices, Clean Energy Associates (CEA) also expects that there will be substantial contract re-negotiation due to the new circumstances. Suppliers in third nations that have been setting above-market prices for modules destined for the U.S. market may fall out of favor over the short term.

This executive action has no direct bearing on Customs’ Withhold Release Order on Hoshine Silicon or the implementation of the Uyghur Forced Labor Prevention Act. However, this action to delay implementation of duties shows that the Biden Administration is willing to intervene to prevent severe impacts on the solar market that may be the side effects of acting on other policy priorities.

Additionally, President Biden will use the Defense Production Act to support U.S. solar manufacturers with the aim of growing domestic capacity. There is still strong demand for U.S.-made manufacturing as a strategy to reduce dependence on supply chain disruptions and rising logistics costs. More details are needed to assess the timing and size of U.S.-based manufacturing opportunities.

Read the full White House Briefing: President Biden Takes Bold Executive Action to Spur Domestic Clean Energy Manufacturing