On February 4, 2022, the White House announced that President Biden extended for another four years the Section 201 tariffs on imported crystalline silicon solar panels. The president raised the annual tariff rate quota for solar cells from 2.5 gigawatts to 5 gigawatts. The U.S. imported approximately 2.7 gigawatts of solar cells last year.
The decision also upheld the current Section 201 tariff exclusion for bifacial panels, which absorb light on both sides and are used most often in utility-grade solar projects, and are the preferred panel of large developers.
The decision also allows for duty-free imports from Canada and Mexico, but those markets currently comprise less than 1% of solar imports to the U.S. The U.S. International Trade Commission previously supported this tariff extension in November on the grounds that tariffs were necessary to prevent serious injury to domestic competition. Congress has been considering proposed legislation to provide incentives for domestic solar manufacturing, but there are no signs of imminent progress.
Should you have any questions about this decision or Section 201 tariffs in general, please contact Mike Walsh, Jeff Atkin, or your Foley lawyer.