MUMBAI – The growing trade partnership between India and the United States in the renewable energy sector faced a major disruption on February 25, as the US Commerce Department imposed preliminary countervailing duties of 125.87 percent on solar cell and panel imports from India. This decision followed a petition filed by the Alliance for American Solar Manufacturing and Trade, which includes major US players like First Solar and Hanwha Qcells. The group alleges that Indian exporters benefit from unfair subsidies that allow them to undercut domestic American manufacturing.
The scale of this trade is significant for both nations. In 2025, solar panel imports from India, Indonesia, and Laos were valued at approximately 4.5 billion dollars, accounting for nearly two-thirds of all US solar imports. While the White House recently implemented a temporary 10 percent tariff on Indian goods, this new Commerce Department ruling represents a far more aggressive protectionist stance. The Trump administration has signaled that additional tariff authorities could be invoked in the coming weeks to further shield American industry.
The situation for Indian solar exporters could worsen in March. The Commerce Department is currently investigating whether these countries have also sold products in the US below production costs. If that determination is affirmative, additional anti-dumping duties will be stacked on top of the current 125.87 percent rate. This focus on India is particularly sharp, as its subsidy rate was fixed significantly higher than those for Indonesia at 104.38 percent and Laos at 80.67 percent.
The news triggered an immediate reaction across India’s renewable energy sector. Major manufacturers saw their shares decline as the market adjusted to the potential loss of access to the lucrative US market. Waaree Energies dropped as much as 14.6 percent, hitting the lower circuit during early trade. Other industry players, including Premier Energies, Vikram Solar, and Waaree Renewable Technologies, also saw notable declines as the industry braced for a period of heightened trade tension between Washington and New Delhi. (IANS)
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