US to remove safeguard tariffs on solar imports from Canada

The US and Canada have agreed on a memorandum of understanding (MoU) to resolve a dispute on trade in solar products, whereby the US will remove its safeguard tariffs on solar products from Canada.

The MoU will be signed on Friday by US Trade Representative Katherine Tai and Mary Ng, Canada’s Minister of International Trade, Export Promotion, Small Business and Economic Development, the Office of the United States Trade Representative (USTR) announced on Thursday.

The agreement comes after Canada won a dispute panel under the Canada-United States-Mexico-Agreement (CUSMA) earlier in 2022.

In 2018, former President Donald Trump introduced Section 201 tariffs on imports to the US of crystalline silicon photovoltaic modules, including from Canada. According to a Canadian government announcement, since then, Canadian exports of solar products to the US have dropped by as much as 82%.

“This agreement will bring stability and predictability to our renewable energy sector and strengthen North American competitiveness. It is a clear recognition of Canada’s place as a leader in the fight against climate change, and that Canadian producers of solar technology will continue to supply global markets at an increasing rate,” minister Ng said in a statement on Thursday.

USTR said the MoU includes a mechanism to ensure that imports from Canada do not undermine the existing US safeguard measure on solar imports.

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