On Tuesday, US President Biden announced his third decision to exercise the presidential veto. The decision concerns whether the United States will continue to impose tariff exemptions on solar panel imports from four Southeast Asian countries.
The U.S. Congress has reportedly passed legislation that would abolish U.S. exemptions from tariffs on imported solar panels from the Philippines, Thailand, Malaysia and Vietnam. If the legislation goes into effect, imports of solar panels from these countries would be considered a threat to the U.S. industry and would be subject to steep tariffs. However, Biden said he disagrees with the legislation, which he believes would unnecessarily burden the solar industries in these countries while hindering U.S. plans to drive sustainable development.
As a result, Biden exercised his presidential veto, preventing the legislation from taking effect. This means that the four Southeast Asian countries that currently still enjoy exemptions can continue to export solar panels to the United States without paying additional duties.
However, Biden has also indicated that he does not plan to extend the waiver after it expires, according to sources. After the exemption expires, solar panels exported from Southeast Asian countries will be treated the same as solar panels exported from other countries and will need to pay high tariffs.
This decision caused a lot of repercussions in the industry. Some solar energy companies believe that if tariffs are imposed again after the exemption period expires, it will have a considerable impact on their business, and it will also hinder the United States' plan to promote sustainable development. Others, however, argue that to become more competitive in the solar industry, technological innovation and advancement must be driven, and this is not achieved through tariff exemptions.
In short, Biden's decision this time not only gave Southeast Asian countries a chance to breathe, but also reminded them that they need to accelerate the pace of technological upgrading. In the future, whether these countries will be able to remain competitive in the solar industry will depend on their technology and market performance.