Trump administration imposes 125.87 per cent tariffs on solar imports from India

The Trump administration has imposed preliminary countervailing duty of 125.87 per cent on imports of specified solar good claiming that India has unfairly subsidised the products. The announcement was recently made by the US Commerce Department.

The US has also announced different duties on the imports of 'Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules' from Indonesia and Laos.

What the Commerce Department order said

"On February 24, 2026, the US Department of Commerce announced its preliminary affirmative determinations in the countervailing duty investigations of crystalline silicon photovoltaic cells, whether or not assembled into modules (solar cells), from India, Indonesia, and the Lao People's Democratic Republic (Laos)," stated the order.

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It further stated that solar imports from India into the US increased to USD 792.6 million in 2024 from USD 83.86 million in 2022.

Final determination schedule

"Unless postponed, the final determination in these CVD investigations are currently scheduled to be issued on July 6, 2026. Commerce (department) is also conducting concurrent anti-dumping duty investigations of solar cells from India, Indonesia, and Laos," it added.

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Countervailing duties help companies to protect them from increase in subsidised imports. However, these duties are different from the 10 per cent tariffs announced by the Trump-administration on all countries from February 24.

Subsidy rates outlined

According to a Reuters report, a fact sheet posted on the Commerce Department’s website shows the agency calculated general subsidy rates of 125.87 per cent for imports from India, 104.38 per cent for Indonesia and 80.67 per cent for Laos.

As per US government trade data indicate the three countries together supplied about $4.5 billion worth of solar products to the United States last year, accounting for roughly two-thirds of total imports in 2025.

Trade dispute background

The report further stated that move is the first of two decisions expected in the coming weeks in a trade dispute initiated last year by a coalition representing part of the relatively small U.S. solar manufacturing base.

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The Commerce Department is scheduled to issue a separate ruling next month on whether companies from India, Indonesia and Laos sold solar products in the United States at prices below their cost of production.

Industry response

The petition was filed by the Alliance for American Solar Manufacturing and Trade, whose members include South Korea’s Hanwha Qcells , Arizona-based First Solar and San Antonio-based Mission Solar, owned by Korea’s OCI Holdings . The companies say the case is aimed at safeguarding billions of dollars invested in domestic manufacturing facilities.

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Tim Brightbill, lead attorney for the Alliance, described the preliminary decision as “an important step toward restoring fair competition.”

“American manufacturers are investing billions of dollars to rebuild domestic capacity and create good-paying jobs. Those investments cannot succeed if unfairly traded imports are allowed to distort the market,” he said in a statement.

(With agency inputs)