Electrical Equipment / Components & Telecoms

U.S. President Joe Biden will make an announcement on Wednesday to exempt solar panels from Thailand, Malaysia, Cambodia and Vietnam from tariffs for 24 months, people familiar with the matter said. The move comes amid a months-long U.S. Commerce Department investigation into whether solar panel imports from the four countries circumvented tariffs on Chinese-made goods, which have led to a suspension of solar panel imports from the four countries. , imports from these countries account for 80% of U.S. solar panel imports and more than half of supply; some governors, lawmakers, industry officials and environmentalists have expressed concern about the investigation, which could lead to retroactive tariffs of up to 250%.

Clean energy groups say the investigation has had a chilling effect on the industry, some of which have asked Commerce Secretary Raimondo to dismiss it, although she says it has no power to influence. The report said Biden's move would bring certainty to the U.S. solar market and ease concerns that companies would have to hold billions of dollars in reserves to pay potential tariffs. The investigation, which began in late March, could take 150 days or more to complete. Sources said Biden would also invoke the Defense Production Act, backed by loans and grants, to advance U.S. manufacturing of solar panels and other clean energy technologies in the future.

Thailand will export US$1.07 billion worth of solar cells to the US in 2021, accounting for 49% of Thailand’s total solar cell exports.