On June 6, 2022, the Department of Commerce announced a 24-month suspension of tariffs on solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam to avoid disruptions to the electric power system. The move follows growing concerns from legislators, industry leaders, and administration officials about the negative impacts of the Commerce Department’s investigation into whether imports of solar panels from those countries are circumventing tariffs on goods made in China. According to the American Clean Power Association, nearly 80% of panels used in U.S. projects come from those four countries. The Commerce Department said the preliminary investigation could lead to tariffs of 50% or more on panels from these countries.

On the same day, President Biden authorized the Department of Energy (DOE) to invoke the Defense Production Act (DPA)[1] to help strengthen domestic production of solar panels, electric transformers, heat pumps, insulation, and hydrogen-related equipment.[2] The DPA allows the president to coordinate with industry to encourage the manufacturing of products that are in the interest of national defense. The president has previously invoked the DPA to spur COVID-19 vaccine and electric battery production.

[1] https://www.commerce.gov/news/press-releases/2022/06/department-commerce-statement-president-bidens-proclamation-solar-cells

[2] https://www.energy.gov/articles/president-biden-invokes-defense-production-act-accelerate-domestic-manufacturing-clean