The United States has announced the imposition of tariffs of up to 3,521% on imports of solar cells from Southeast Asian countries such as Cambodia, Malaysia, Thailand, and Vietnam. This measure responds to allegations that Chinese manufacturers operating in these countries are selling products below production cost and receiving unfair subsidies, harming the U.S. solar industry.
Who requested the tariff imposition?
The petitioner group, the American Alliance for Solar Manufacturing Trade Committee, accused major Chinese solar cell manufacturers with factories in Malaysia, Cambodia, Thailand, and Vietnam of selling cells at prices below production cost and receiving subsidies that make U.S. products uncompetitive. In order for the tariffs to be finalized, the U.S. International Trade Commission must vote in June on whether the domestic industry has been materially injured by the dumped and subsidized imports.
Technical difference between solar panel and cell
It is important to emphasize a technical distinction in this case: the tariffs are aimed at solar cells, which are a vital component of a solar panel.
Solar cell: A basic photovoltaic unit that converts sunlight into electricity. It is an individual component, generally made of silicon.
Solar panel: An assembly of multiple interconnected and encapsulated solar cells designed to generate higher power. It is the final product installed.
Impact on Mexican companies
Indirect Risk: If a Mexican producer assembles panels using cells imported from any of the sanctioned countries, there is a risk that, upon exporting them to the U.S., the panels could be subject to origin verifications or even antidumping measures—particularly if the transformation in Mexico is deemed insufficient to confer Mexican origin (according to the T-MEC's substantial transformation rule of origin).
Nearshoring Opportunity: Global companies could consider Mexico as a destination for new investments in solar manufacturing and assembly, particularly if non-Asian origin cells are used, or if Mexico eventually develops local solar cell manufacturing capacity.
Relevance of USMCA Rules of Origin: Strict compliance with the specific rules of origin under the USMCA will be essential to secure preferential treatment and avoid the imposition of tariffs. U.S. customs authorities may request additional proof of origin, such as supplier declarations, production process documentation, and regional value content analysis
Need for Technical-Legal Analysis of Inputs Used: We recommend conducting a preventive assessment of the origin of each input and the degree of transformation carried out within national territory, in accordance with Articles 4.2 and 4.3 of the USMCA and its Annex on Product-Specific Rules of Origin, to substantiate Mexican origin during any verification within the USMCA territory.
Conclusion
In conclusion, the imposition of tariffs on solar cells from Southeast Asia represents both a potential risk and a strategic opportunity for Mexican producers. Taking advantage of this trade dispute will depend on the ability to comply with USMCA origin requirements and to strengthen preventive customs compliance. We recommend a proactive approach that combines legal review of origin, input traceability, and preparedness to respond to destination audits, especially considering that the tariffs have not yet been implemented and that there is an imminent risk that could impact both U.S. consumers and producers.
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