White House Warns of Biden Veto if Congress Restores Solar Panel Tariffs Targeting China

President Joe Biden is standing firm against a joint resolution that would undermine his solar panel rule, which temporarily protects some Chinese-made equipment from tariffs. The White House has stated that this rule is necessary to meet the demand for reliable and clean energy while ensuring that U.S. trade laws are rigorously enforced. The House resolution of disapproval, sponsored by both Republicans and Democrats, would restore tariffs on solar panels with parts and components from China that are assembled in Southeast Asian countries.

The House resolution could be brought to the floor for a vote this week. If both resolutions pass the House and Senate, the joint resolution could overturn Biden’s 24-month tariff freeze. However, if Biden tries to quash the joint resolution, both chambers must secure two-thirds majorities to defeat his veto.

Tariff Freeze

Biden froze tariffs on those solar panels in connection with an emergency proclamation in June 2022. The legislation would disapprove of a September 2022 rule from the Department of Commerce putting Biden’s proclamation into effect. That rule references panels completed in Southeast Asian countries with “parts and components manufactured in the People’s Republic of China.”

“The Commerce rule provides a short-term bridge to ensure there is a thriving U.S. solar installation industry ready to purchase the solar products that will be made in these American factories once they are operational,” the White House statement reads.

“Given the strong trends in the domestic solar industry, the President does not intend to extend the tariff suspension at the conclusion of the 24-month period in June 2024.”

The resolution of disapproval advanced through the House Ways and Means Committee last week. Supporters of the bill believe in an “all-of-the-above” energy policy that supports whatever form of energy makes sense for the community. However, they do not believe in providing special treatment for unfairly traded solar panels that rely on supply chains dominated by our adversaries.

Opponents of the resolution, like Rep. Judy Chu (D-Calif.), believe that the administration’s emergency order is a short-term intervention that gives solar projects in the pipeline a needed bridge.

Clear Trend in Biden Vetoes

If the president goes through with what could be the third veto of his presidency, it will continue a clear pattern as he faces a Congress that’s less friendly than it was before the 2022 midterm elections. Biden’s two previous vetoes also took down joint resolutions from the House and Senate aimed at his agenda on climate, energy, and the environment.

His first veto was against an anti-ESG investment measure.