US Imposes Preliminary 126% Duty on Indian Solar Imports Amid Subsidy Concerns
The administration of Donald Trump has imposed preliminary duties of 126% on solar panel imports from India, citing unfair government subsidies that allegedly enabled Indian manufacturers to undercut US producers.
The decision was announced by the US Department of Commerce following an investigation into foreign subsidies provided to solar manufacturers. The department also proposed duties ranging from 86% to 143% on imports from Indonesia and 81% on solar products from Laos on similar grounds.
Move Aims to Protect Domestic Manufacturers
US officials said the preliminary duties are intended to counter subsidies that gave foreign solar exporters an unfair pricing advantage over American manufacturers. Industry groups in the US had urged authorities to investigate, arguing that subsidised imports were harming domestic production and investments.
Tim Brightbill, legal representative for the Alliance for American Solar Manufacturing and Trade, said the decision marks an important step toward restoring fair competition and supporting domestic manufacturing growth.
Impact on Trade and Solar Industry
The new duties could significantly affect Indian solar exporters, potentially limiting their access to the US market. According to the Commerce Department, solar imports from India were valued at approximately $792.6 million in 2024, representing a more than ninefold increase compared to 2022.
India, Indonesia, and Laos together accounted for about 57% of solar module imports into the US during the first half of 2025, according to industry data. Many developers had shifted sourcing to these countries after earlier US tariffs targeted other Southeast Asian suppliers.
Analysts said the steep duty rates could disrupt supply chains and increase costs for solar developers and consumers in the US, while also posing challenges for exporters from affected countries.
Separate from Global Tariff Measures
Officials noted that these duties are distinct from broader global tariffs introduced by the Trump administration, which were recently challenged in court. The US Commerce Department is also conducting a separate anti-dumping investigation into solar cell imports from the three countries.
The final determination in the subsidy investigation is expected to be issued by July 6, which will confirm whether the preliminary duties will be made permanent or revised.
The decision underscores ongoing trade tensions and efforts by the US to strengthen domestic manufacturing while balancing the growing demand for renewable energy infrastructure.