Biden’s Third Presidential Veto is Uncommon

President Biden Vetoes Bipartisan Measure to Reinstate Tariffs on Solar Products

President Joe Biden has issued a rare veto against a bipartisan measure that aims to reinstate tariffs on solar products from Southeast Asian countries. The move comes after U.S. officials found that Chinese companies were using these nations to get around trade rules. The measure passed by the GOP-led House and Democrat-controlled Senate “bets against American innovation,” Biden said in a message from the White House announcing the third veto of his presidency.

Biden Prioritizes Carbon-Free Electricity Sector

Biden also said that the measure causes uncertainty for the U.S. solar industry, which is central to the president’s goal of reaching a “carbon-free electricity sector” by 2035. At issue is a Commerce Department rule that instituted a two-year moratorium on penalties against solar cells and modules exported from Cambodia, Malaysia, Thailand, and Vietnam.

China’s Circumvention of U.S. Tariffs

Biden authorized the move with a proclamation in June 2022 to “ensure access to a sufficient supply of solar cells and modules to assist in meeting the United States’ electricity generation needs” while the Commerce Department conducts inquiries into ways in which China is able to circumvent U.S. tariffs through its neighbors. After preliminary findings reported in December showed at least four Chinese companies evading U.S. tariffs through Southeast Asian countries, Republicans in the House and Senate led the charge against the rule, arguing the Chinese Communist Party (CCP) needed to be held accountable for breaking U.S. trade laws as well as for human rights abuses.

Biden’s Veto Supported by Democrats

Some Democrats joined the effort, including Sen. Joe Manchin (D-WV), who co-sponsored the Senate version. However, a group of Democrats in the Senate who sided with members of the solar industry in voicing support for Biden’s veto said the bipartisan measure threatens “to derail much of the progress we’ve made and kill good-paying American jobs, while threatening our clean energy future.”

Biden’s Intention to Not Extend Tariff Suspension

Biden said on Tuesday that he does not intend to extend the tariff suspension at the conclusion of the two-year period in June 2024, citing “progress” made in the U.S. solar sector. This marks Biden’s third veto, with the previous two being used to block measures related to ESG investment and waterways regulation.

• Biden issues rare veto against bipartisan measure to reinstate tariffs on solar products from Southeast Asian countries
• Measure causes uncertainty for U.S. solar industry and goes against Biden’s goal of a carbon-free electricity sector by 2035
• Commerce Department rule instituted a two-year moratorium on penalties against solar cells and modules exported from Cambodia, Malaysia, Thailand, and Vietnam
• Republicans argue that the Chinese Communist Party (CCP) needs to be held accountable for breaking U.S. trade laws and human rights abuses
• Biden’s veto supported by some Democrats, while others fear it will harm progress in the clean energy sector
• Biden does not intend to extend tariff suspension after two-year period ends in June 2024

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