On June 6, US President Joe Biden announced that he would exempt from tax for 2 years for solar panels from Cambodia, Malaysia, Thailand and Vietnam, while China will not receive tax incentives on this item, according to the White House.
 |
| Solar cells made in Vietnam are being opened to the US market |
The US move is to increase domestic clean energy production follows President Biden's plan, AFP and Reuters reported.
Earlier, the US Department of Commerce opened an investigation to trace the origin of solar panels imported from four Southeast Asian countries, including Vietnam. The US side wants to find out whether the exports of the group of 4 ASEAN countries are from China or not, in order to enjoy the US's preferential advantage over these countries.
The investigation dragged on for months, freezing supplies and halting projects in the US, according to people familiar with the matter.
President Biden's decision is said to address the concerns of American companies about having to spend billions of dollars to pay tariffs, thereby giving green light to clean energy projects.
A total of 19 state governors, 22 senators, dozens of congressmen, industry officials and environmental campaigners have voiced concerns about the Commerce Department's investigation, with tax arrears can increase up to 250%.
The solar panel tax exemption only applies to four countries while the investigation is still underway. Depending on the outcome of the investigation, the US will decide whether to re-impose the tariffs after 24 months.
Before President Biden announced the tax exemption, the investigation had hindered the number of solar panels that account for more than 50% of US supply and 80% of imports of this item.
Increasing renewable energy sources such as solar power is key to the goal of President Biden in cutting greenhouse gas emissions by 50% to 52% by 2030 from 2005 levels, as well as removing carbon emissions from the US national grid by 2035.
In addition, the White House boss also activated the Defense Production Act to increase domestic production of solar cells to meet increased demand in the near future.
0 Comments