US Imposes Hefty Duties on Indian Solar Imports

The US announced a preliminary countervailing duty of 125.87% on imports of certain Indian solar goods, alleging unfair subsidies by New Delhi. Duties also affect imports from Indonesia and Laos. The US Department of Commerce's decision impacts solar trade dynamics, as India takes steps to boost domestic solar manufacturing.

In a significant trade development, the United States has announced a preliminary countervailing duty of 125.87% on imports of specific solar goods from India, citing unfair subsidies provided by New Delhi. The duties also extend to similar imports from Indonesia and Laos, as per a US Department of Commerce announcement dated February 24, 2026.

The decision builds on existing tariffs imposed during the Donald Trump administration, which included a 10% duty on solar imports from all countries. Notably, US imports of Indian solar products surged to $792.6 million in 2024 from $83.86 million in 2022, highlighting the escalating trade tensions.

Concurrently, India is ramping up efforts to enhance its domestic solar manufacturing capacity. Through various government schemes and a production-linked incentive framework, India aims to reduce reliance on imports, particularly from China, and boost local production to support its growing renewable energy sector.