India Among Targets as US Solar Makers Seek New Tariffs on Cheaper Imports

A coalition of American solar panel makers has filed a fresh petition with the US Department of Commerce, seeking anti-dumping and countervailing duties on imports from India, Indonesia, and Laos. Manufacturers from these countries are accused of undercutting prices and threatening domestic industry growth.

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The complaint, submitted on Thursday by the Alliance for American Solar Manufacturing and Trade, alleges that companies from the three countries are dumping panels at below production cost and benefiting from unfair government subsidies. The group includes major players like First Solar, Qcells (a division of Korea’s Hanwha), and privately held Talon PV and Mission Solar.

Surge in Imports Triggers Action

According to the petition, imports from the three nations surged to USD 1.6 billion in 2023, up from just USD 289 million in 2022. The coalition says this spike follows earlier US trade action, which imposed tariffs on panels from Malaysia, Vietnam, Cambodia, and Thailand - key locations where Chinese-owned firms had shifted production to avoid penalties.

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The latest petition accuses those same firms of now rerouting production to Indonesia and Laos, while also alleging that India-based manufacturers are aggressively pricing solar modules to capture US market share, putting new American factories at risk.

US Panel Makers Push for Enforcement

“We have always said, vigorous enforcement of our trade laws is critical to the success of this industry,” said Tim Brightbill, lead attorney representing the petitioners. The group is calling for swift action to level the playing field amid a sharp increase in global competition.

While most solar panels installed in the US continue to be imported, domestic capacity has grown sharply, aided by tax incentives under the 2022 Inflation Reduction Act (IRA). The IRA has spurred new investments in solar manufacturing, pushing US panel capacity to 50 GW in 2024, up from just 7 GW in 2020, according to the Solar Energy Industries Association (SEIA).

Gap Between Capacity and Demand Remains

Despite this growth, US production still lags behind demand. The country is expected to install nearly 43 GW of solar annually through 2030, making it heavily dependent on imports in the near term.

The Commerce Department now has 20 days to decide whether to launch a formal investigation. If it proceeds, the case could take up to a year before any tariffs are finalised. The Department has not yet issued a public response.

This latest trade move marks another chapter in the ongoing reshuffling of global solar supply chains, as the US seeks to reduce its reliance on China-linked production and rebuild a competitive domestic industry.