Washington: The US President Donald Trump’s administration on Wednesday announced a steep 126 percent tariff on certain solar goods imported from India, accusing it of unfairly subsidising these products.
According to Kashmir Media Service, the US Commerce Department has also set initial duties in the range of 86 per cent-143 per cent for Indonesia and 81 per cent for Laos. The rates are based on the determination of foreign subsidies that the US says allowed exporters from these countries to undercut domestic solar products.
In a factsheet, the US Commerce Department claimed that solar panel manufacturers in India get 126 per cent subsidy, while it stands at 104 per cent for Indonesia and 80 per cent for Laos.
The Indian government has not commented on the latest US tariff move so far.
Earlier this month India and the US came out with a framework for a bilateral trade deal, under which the US had agreed to lower tariffs on a majority of Indian imports from 50 per cent to 18 per cent. While this proposal became irrelevant after the US Supreme Court’s ruling, the latest tariffs on solar products add to the uncertainty.
The opposition Congress has sharpened its attacks on Prime Minister Narendra Modi’s government over the trade deal, with senior leaders of the party asking the government to keep the deal on hold.
India is the fifth largest supplier of solar modules to the US. In 2024, out of the 54 GW of solar modules imported by the US, India accounted for 4.4 GW, or 8 percent of the total volume.
The new tariff announcement led to a sharp drop in the share prices of Indian solar equipment makers.
Waaree Energies claimed that the new US tariff would not have any adverse material impact, while Vikram Solar expected a limited impact.
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