US announces 126% initial duties on Indian solar products

The United States has announced preliminary import duties of 126% on solar products from India, following a finding that Indian manufacturers benefited from state subsidies that gave them an unfair advantage over American producers.

The decision, issued by the US Commerce Department, also imposes provisional countervailing duties on other exporters. Imports from Indonesia face tariffs ranging between 86% and 143%, while shipments from Laos are subject to duties of 81%. US officials said the measures are intended to offset foreign subsidies that allowed low-priced imports to undercut domestic solar manufacturers.

Although the move is designed to strengthen US manufacturing, it adds uncertainty to a solar industry that has already faced policy headwinds under Donald Trump. Analysts warn that the duties could raise costs for both solar developers and consumers, potentially slowing project deployment.

The tariffs are separate from Trump’s broader global trade measures, several of which were struck down by the Supreme Court last week. Following that ruling, the administration introduced a new 10% baseline tariff, with the possibility of increasing it to 15%. The decision also comes shortly after Washington and India reached a bilateral trade agreement aimed at easing economic frictions.

According to BloombergNEF, India, Indonesia, and Laos accounted for 57% of US solar-module imports during the first half of 2025. Many developers had turned to these markets after earlier US penalties sharply reduced imports from several Southeast Asian countries.

Data from the Commerce Department show that US solar imports from India were valued at $792.6 million in 2024, more than nine times the level recorded in 2022. Analysts say the newly proposed duty levels could effectively shut Indian manufacturers out of the US market. Citi analyst Vikram Bagri noted that the scale of the tariffs makes the United States a largely unviable destination for Indian solar exporters.

The investigation was initiated following a petition from the Alliance for American Solar Manufacturing and Trade, which argued that subsidies were distorting competition. Tim Brightbill, lead counsel for the Alliance, said the ruling marked a key step toward restoring fair conditions in the US solar sector, emphasizing that domestic manufacturers are investing heavily in rebuilding capacity and creating jobs.

The Commerce Department is expected to issue its final ruling on July 6. At the same time, it is conducting a parallel anti-dumping investigation into solar cell imports from India, Indonesia, and Laos, which could result in additional trade penalties.