Recently, the U.S. Trade Representative (USTR) announced that the tariff exclusions under Section 301 for 178 items of solar manufacturing equipment will be extended until November 10, 2026. The original exemptions were set to expire on November 29, 2025. This extension is linked to the “Trade and Economic Agreement” reached between the U.S. and China on November 1.
In its statement, USTR noted that the decision to extend the exemptions was based on a public comment period initiated in 2024. The feedback showed that 147 of the 178 exempted items received clear support for extension, with businesses generally indicating that “supply sources outside China remain limited, requiring more time to shift procurement channels.” Only 10 items received objections. It is noteworthy that the 50% tariff on solar cells imposed by the U.S. remains in effect.
The exempted equipment covers critical stages across the entire solar module production chain. According to USTR’s list, this includes wafer production equipment such as monocrystalline silicon ingot growth furnaces and diamond wire cutting machines, auxiliary equipment like coolant recovery systems and wafer cleaning and polishing devices, as well as thin-film deposition equipment such as plasma-enhanced chemical vapor deposition (PECVD) and physical vapor deposition (PVD) machines. It also encompasses backend equipment like screen printing lines and wafer handling systems.
This move contrasts with recent U.S. solar tariff policies. The Section 301 tariffs were initiated under the Biden administration. In May 2024, the White House increased tariffs on imported Chinese solar cells from 25% to 50%. In December of the same year, tariffs on polysilicon were doubled to 50%, and a 50% tariff was imposed on solar wafers for the first time. Beyond the solar sector, Section 301 tariffs also include a 100% tariff on Chinese electric vehicles and a 25% tariff on EV batteries. Starting in 2026, a 25% tariff will also apply to non-EV batteries, steel, and aluminum products.
Industry analysts believe that the U.S. extension of equipment exemptions while maintaining high tariffs on finished products reflects its effort to balance “protecting domestic manufacturing capabilities” with “meeting energy transition needs.” Currently, the U.S. has strong demand for solar installations, but domestic equipment manufacturing capacity remains insufficient, leading to continued heavy reliance on imports in the short term. This extension provides a crucial window for relevant businesses to adjust their supply chains.
