United States Department of Commerce has announced preliminary countervailing duties of 126 per cent on solar cell and panel imports from India. The decision, made under the Trump administration, follows a finding that the Indian government provided unfair subsidies to solar manufacturers, allowing them to sell products below market prices and harm US producers.
The duties apply to crystalline silicon photovoltaic cells, whether assembled into modules or not. They stem from a trade petition filed by a group of US solar manufacturers last year, which accused India, along with Indonesia and Laos, of providing government support that distorted fair competition. For India, the calculated subsidy margin stood at approximately 125.87 per cent, leading to the 126 per cent preliminary rate. Indonesia faces duties ranging from 86 per cent to 143 per cent, while Laos faces 81 per cent.
These are countervailing duties aimed at offsetting foreign subsidies rather than anti-dumping measures, though a separate anti-dumping investigation is ongoing with final decisions expected later this year. The preliminary rates will take effect soon unless changed after public comments and further review.
The move is likely to raise costs for US importers and installers relying on Indian solar products, potentially slowing deployment of renewable energy projects. Indian solar companies with US exposure, including major exporters, could see reduced competitiveness in the American market. Shares of firms like Waaree Energies and Premier Energies fell sharply in early trading on Indian exchanges following the announcement.
The decision comes amid ongoing India-US trade talks, including recent agreements on tariffs and market access. Some analysts view it as a signal that the US continues to prioritise protecting domestic industries under an “America First” approach, even as bilateral negotiations progress.
Indian government and industry officials have not yet issued a formal response, but the high duty rate has raised concerns about its impact on exports. India’s solar sector has grown rapidly, supported by production-linked incentives and export ambitions, making the US an important market.
The Commerce Department noted that these preliminary findings aim to level the playing field for American solar manufacturers facing subsidised competition from abroad.
