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The administration of Donald Trump has imposed preliminary duties of 126 per cent on solar imports from India, citing unfair government subsidies that it said hurt American manufacturers. The decision was announced on Tuesday by the US Department of Commerce, Trak reported.
The move also targets exporters from Indonesia and Laos. Indonesian shipments will face duties ranging from 86 per cent to 143 per cent, while imports from Laos will attract levies of around 81 per cent. The action is expected to add fresh strain to global renewable energy supply chains.
US authorities said their investigation found that state-backed incentives in India, Indonesia and Laos enabled companies to sell solar modules at prices below fair market value. The probe was launched after a petition by the Alliance for American Solar Manufacturing and Trade, which alleged that subsidised imports were undercutting domestic producers.
Tim Brightbill, counsel for the Alliance, said the finding was a step toward ensuring fair competition in the US solar market. He stated that American manufacturers are investing heavily to expand production capacity and create jobs, and that such investments could be affected if imports benefiting from subsidies continue to enter the market unchecked.
Data from BloombergNEF show that India, Indonesia and Laos together accounted for 57 per cent of US solar module imports in the first half of 2025. After earlier tariffs were imposed on four Southeast Asian countries, US developers increasingly sourced modules from these three markets. Imports of Indian solar panels into the US reached $792.6 million in 2024, more than nine times the level recorded in 2022.
The countervailing duties, however, apply only to solar cells manufactured in India and not to panels assembled in India using imported cells. Speaking to Zee Business, Hitesh Doshi of Waaree Energies said the duties are based on the country of origin of the solar cells. He noted that many Indian manufacturers import cells from countries facing lower duties before assembling panels for export, which may limit the overall impact. According to him, only about 4 per cent of US solar imports involve panels made with India-manufactured cells, affecting an estimated 600 to 1,000 megawatts of exports.The new duties are separate from broader global tariffs that were recently struck down by the Supreme Court of the United States. The administration has since announced fresh tariffs of 10 per cent, later raised to 15 per cent, though these have not yet come into effect. A final decision on the subsidy investigation is expected by July 6, while a separate anti-dumping inquiry is continuing.
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