The Biden administration announced on Wednesday the lifting of a tariff exemption granted in 2019 for bifacial solar modules, a move aimed at preventing Chinese imports from undercutting U.S. solar manufacturing.

The White House cited a significant surge in imports of the two-sided solar panels as the reason for restoring the tariffs under Section 201 of the Trade Act of 1974. This exemption had been in place since the Trump administration first implemented it.

In addition, the administration will allow clean energy developers to more easily utilize bonus tax credits for domestic content under the Inflation Reduction Act of 2022. This will be achieved by permitting developers to rely on default cost percentages from the U.S. Department of Energy.

"We're taking these new actions this week to support U.S. clean energy industries, to reduce emissions, and to ensure fair competition with China," said John Podesta, senior adviser for international climate policy, during a call with reporters.

The Trump administration had attempted to reinstate the tariffs in October 2020 under Section 204 of the Trade Act. However, the U.S. Court of International Trade restored the exemption the following year, ruling that Section 204 was intended to liberalize trade, not restrict it.

This announcement follows the Biden administration's decision to increase tariffs on $18 billion worth of Chinese goods, including electric vehicles and solar cells, to protect U.S. industries from what officials deem unfair Chinese trade practices.

On Wednesday, White House officials emphasized that these actions aim to ensure a level playing field for the U.S. in competition with China and other countries.

Despite the competitive nature of U.S.-China relations, Podesta highlighted the importance of cooperation on climate change. He noted a recent meeting with his Chinese counterpart, Liu Zhenmin, in Washington, where they agreed to enhance technical and policy exchanges.

"Even as the overall relationship between our two countries has increasingly been characterized by fierce competition, we have an obligation to our citizens and the world to communicate, cooperate, and collaborate on tackling the climate crisis," Podesta said.

Tariffs on Bifacial Solar Panels

The administration's actions also coincide with the upcoming end of a two-year pause on penalty duties, effective June 6, for four Southeast Asian countries found to be evading duties on Chinese-made solar modules. President Joe Biden initiated this pause in June 2022, waiving antidumping and countervailing tariffs on imports from Cambodia, Malaysia, Thailand, and Vietnam to allow U.S. companies time to adjust their supply chains.

White House National Climate Advisor Ali Zaidi stated that the administration would enforce the end of the pause "vigorously," including cracking down on stockpiling efforts.