Mexico’s push for a deal with the United States to exclude about $400 million worth of solar panel exports from a 14.25 percent “safeguard” duty appears to be stalled in the Office of the U.S. Trade Representative.
The delay threatens the loss of hundreds of jobs at Mexico’s biggest solar panel producer, Maxeon, just as Mexico’s new president, Claudia Sheinbaum, is set to take office Oct. 1.
It also could derail Maxeon’s plans to build a new production facility in the United States and prompt Mexico to consider retaliating against $1 billion worth of U.S. exports.
However, recent trade data shows the U.S. trade deficit with Mexico is already on track to hit a new record high this year in the range of $165 billion. That, plus the U.S. presidential election, creates a difficult political environment for U.S. Trade Representative Katherine Tai to exclude the Mexican imports from the tariff.
