In a recent development, a bipartisan group of US senators urged President Joe Biden to raise tariffs on Chinese-made solar imports, claiming that heavily subsidized Chinese products undermine domestic manufacturing efforts. However, this call for increased tariffs has sparked a debate, with critics arguing that such a move could jeopardize the progress of the vibrant clean energy economy in the US.
The senators contend that the influx of cheap Chinese photovoltaic imports poses threats to US manufacturers and energy security. They believe that imposing additional tariffs is necessary to protect domestic manufacturing. However, opponents argue that this approach is regressive, potentially hindering the US clean energy sector and green job growth.
Critics assert that knee-jerk tariffs could have several adverse effects. Firstly, they may negatively impact US consumers and hinder the adoption of green technologies by making Chinese solar products less affordable. Secondly, tariffs could be detrimental to the booming clean economy in the US, as cheap Chinese imports contribute to the growth of higher-value solar construction, maintenance, and design jobs within the country.
Moreover, opponents argue that tariffs would contradict President Biden’s goal of achieving 50 percent clean electricity by 2030, as increased prices may impede the adoption of solar energy. Additionally, cheap solar energy from China helps mitigate the impact of rising electricity prices driven by volatile gas costs, acting as a key factor in reducing overall inflationary pressure.
Critics also highlight that China’s geographical advantage in solar PV manufacturing, with over 80 percent of manufacturing stages for solar panels taking place in the country, makes it difficult for the US to compete. Even in the face of trade tensions, China’s solar exports grew by 64 percent to $52 billion in 2022, emphasizing its dominance in the solar panel production sector.
Rather than rejecting Chinese manufacturing, some argue that the US should capitalize on it, especially considering that solar energy currently constitutes only 6.2 percent of US electricity. By incentivizing the deployment of Chinese imports, the US could catch up in the global race for clean electricity, leveraging abundant land and sunlight resources.
In the broader context, opponents stress that the climate crisis demands international cooperation, and protectionist trade policies may hinder global progress. They caution against prioritizing narrow commercial interests over shared progress in addressing climate change and advocate for collaboration rather than confrontation in the clean tech sector.