President Joe Biden will declare a 24-month tariff exemption on Monday for solar panels from four Southeast Asian nations and announce the Defense Production Act to promote domestic production, Reuters has reported.
The move comes amid the commerce department’s investigation into imports of solar panels from Cambodia, Malaysia, Thailand and Vietnam.
The investigation halted the flow of solar panels that make up more than half of U.S. supplies and 80 percent of imports, a move that was widely criticized by state governors, lawmakers, industry officials and environmentalists.
The Commerce Department said in a release that tariffs on China and Taiwan solar products will remain in place.
“I remain committed to upholding our trade laws and ensuring American workers have a chance to compete on a level playing field. The President’s emergency declaration ensures America’s families have access to reliable and clean electricity while also ensuring we have the ability to hold our trading partners accountable to their commitments,” Commerce Department Secretary Gina Raimondo said in a statement.
Solar energy stocks soared Monday after Reuters’ report.
The tariffs were under the spotlight as the war in Ukraine has increased global energy prices. The tariffs were originally put in place by the Trump administration and a four-year extension was announced last February.
The White House said that the U.S. was on track to triple domestic solar manufacturing capacity by 2024, from 7.5 gigawatts to 22.5 gigawatts.