Biden solar equipment tariffs overview:
- Who: A Federal Circuit panel reversed an appeal’s court decision to prevent the federal government from expanding safeguard tariffs on solar equipment.
- Why: The panel determined former President Donald Trump had not violated the Trade Act by expanding solar safeguard tariffs in 2020.
- Where: The case was in the U.S. Court of Appeals for the Federal Circuit.
A Federal Circuit panel early last week reduced a prior trade court’s decision that had prevented the White House from expanding safeguard tariffs on solar equipment.
At odds was the 2020 addition by former President Donald Trump of bifacial solar modules to a list of solar energy equipment covered by tariffs put in place to safeguard the domestic solar industry.
The Federal Circuit panel determined Trump had not committed any “significant procedural violations of the Trade Act” with his decision to expand the solar safeguard tariffs.
In a move that was consistent with recent appeals involving national security duties, according to Law360, the Federal Circuit panel chose to defer to the president’s interpretation of applicable statutes, assuming no “clear misconstruction” was found.
“We conclude that the President’s interpretation of the applicable statute, which allows him to ‘modify’ an existing safeguard, is not a clear misconstruction,” the Federal Circuit wrote, in its decision.
As part of its decision, the Federal Circuit has instructed the U.S. Court of International Trade to affirm the White House’s authority to increase safeguard duties under the Trade Act of 1974.
Trump, Biden administrations argue former president within rights to withdraw exclusion of solar panels from scheduled duties
Both the Trump and Biden administrations have argued Trump was within his rights to modify a proclamation in order to withdraw the exclusion of solar panels from scheduled duties, reports Law360.
Trump also expanded the fourth-year duty rate from 15% to 18%. Initially, the safeguard duties had been scheduled to drop from 30% in 2018 to 15% by year four.
The Solar Energy Industries Association and solar importers Invenergy Renewables LLC and EDF Renewables Inc. challenged the move, with a trade court ruling that the wording of Section 2254 of the Trade Act only allowed for modifications meant to relax tariffs, reports Law360.
In appealing the decision, the government reportedly argued that the changes did not constitute an expansion of safeguard duties, but claimed the Trade Act would not bar them from making a modification that further restricts trade.
President Biden, in a proclamation of his own last year, extended the solar safeguard duties but declined to include bifacial modules, reports Law360.
In other solar panel-related news, a class action lawsuit was filed against solar company Better Earth by a consumer arguing it failed to install solar panels during a 90-day contract window and failed to install solar panels that were fully operable.
Do you agree with the Federal Circuit decision to allow the White House to expand safeguard tariffs on solar equipment? Let us know in the comments!
The Biden solar equipment tariffs case is Solar Energy Industries Association v. U.S., Case No. 22-1392, in the U.S. Court of Appeals for the Federal Circuit.
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