Senators say that heavily subsidized Chinese goods threaten U.S. solar manufacturing
A 2023 study found that solar panels manufactured in China dropped to 15 cents per watt, more than 60% below the price of a U.S.-made panel.
Additional studies have found American solar manufacturing has increased following the passage of the Inflation Reduction Act
Washington, D.C. – Today, U.S. Senators Reverend Raphael Warnock (D-GA), member of the Senate Agriculture Committee, Jon Ossoff (D-GA), Sherrod Brown (D-OH), and Marco Rubio (R-FL) are urging the Biden Administration to increase tariffs on Chinese solar imports threatening American solar manufacturing.
The letter, authored by Senator Ossoff, urges President Biden to increase tariffs on Chinese-made solar modules, cells, and wafer imports under Section 301 of the Trade Act of 1974.
“China’s aggressive subsidies for its own solar manufacturing industry demonstrate its intent to control the industry globally,” the Senators wrote. “By 2026, China will have enough capacity to meet annual global demand for the next ten years. This capacity is an existential threat to the U.S. solar industry and American energy security.”
According to a recent 2023 study, the price of a solar panel manufactured in China dropped to 15 cents per watt, more than 60% below the price of a U.S.-made panel. The Senators argue that China’s heavily subsidized products are hurting U.S. efforts to reshore domestic solar manufacturing — a key energy security goal.
“These heavily subsidized and artificially low prices put U.S. solar manufacturers at an extreme disadvantage during a critical turning point in the development of the domestic solar manufacturing industry,” they continued. “Section 301 tariffs are needed to avoid dire consequences not only for our economic and national security, but also for the thousands of workers employed by these manufacturers.”
While American solar manufacturing has boomed since passage of the Solar Energy Manufacturing for America Act, which was championed by Senators Warnock and Ossoff and signed into law as part of the Inflation Reduction Act — in the letter, the Senators say more is needed to strengthen the American manufacturing base.
The full text of the letter can be found HERE and below:
Dear President Biden:
As you continue to evaluate the effectiveness and economic impact of Section 301 tariffs during the ongoing statutory four-year review, we urge you to increase and enforce tariffs on solar module, cell, and wafer imports from China under the authority granted in Section 301 of the Trade Act of 1974.
China’s aggressive subsidies for its own solar manufacturing industry demonstrate its intent to control the industry globally. By 2026, China will have enough capacity to meet annual global demand for the next ten years. This capacity is an existential threat to the U.S. solar industry and American energy security.
In 2023, the price of a solar panel manufactured in China dropped to 15 cents per watt, more than 60% below the price of a U.S.-made panel. These heavily subsidized and artificially low prices put U.S. solar manufacturers at an extreme disadvantage during a critical turning point in the development of the domestic solar manufacturing industry. Section 301 tariffs are needed to avoid dire consequences not only for our economic and national security, but also for the thousands of workers employed by these manufacturers.
We must not allow China to destroy U.S. manufacturing and control this strategic energy sector. Therefore, as you continue your Section 301 review, we urge you to increase and enforce tariffs on these Chinese solar products that threaten U.S. economic and energy security.
Sincerely,
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Title and affiliation are provided for identification purposes only. A pastor and social justice advocate, Senator Reverend Raphael Warnock was elected to the United States Senate in 2021 and reelected for a full term in 2022. The Senator serves on the Senate Agriculture, Banking, and Commerce committees, as well as the Senate Aging Committee.