Retroactive Tariffs on Solar Products Coming

The U.S. Senate voted on May 3, 2023, to reinstate tariffs on solar products from Thailand, Vietnam, Malaysia, and Cambodia. This comes after President Biden used a Trump-era policy to lift them. Biden aimed at increasing U.S. solar production and fighting climate change when he used the policy to create a two-year exemption on solar product tariffs from Southeast Asia.

In 2020, President Trump reinstated an old policy created under President Truman, the Defense Production Act of 1950. The act is very broad and gives certain powers to the Federal Government and President, all of which is to ensure the United States’ defense capabilities. Most events like national emergencies or disasters are covered under defense as well; with coronavirus being the main reason for the reinstatement of the decades-old policy. Biden is using the act to pause the tariffs on solar products because of the climate crisis.

The tariffs, which are a result of an investigation into the countries’ production, were enforced because of accusations of labor abuses against the Uyghurs in China. The investigation concluded that the manufacturers in Thailand, Vietnam, Malaysia, and Cambodia were most likely using polysilicon originating from Xinjiang, the territory in China where Uyghurs have been forced into concentration camps to work. Importers could see retroactive tariffs on solar products from the four countries.

The Senate approved the tariffs on solar products 56-41, with several Democrats supporting the bill, which will be on President Biden’s desk. Biden made Congress aware that he would veto the bill. It is not expected to be overridden, but with defectors on both sides, it’s still hard to predict what will happen.

If you have any questions about retroactive tariffs and imports, feel free to contact us at sales@allynintl.com.

Contributor: Robert J. Freeman

(AP)

---

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com