US Slaps 125.87 Percent Duty on Indian Solar, Market Slumps

The US Department of Commerce has announced countervailing duties on solar cells and panels imported from companies in India, Indonesia and Laos. The department said that manufacturers in these countries benefited from government subsidies that placed US producers at a competitive disadvantage.

The latest development follows a petition filed last year by a coalition of domestic solar manufacturers, when the group argued that subsidised imports were undermining American investments in solar manufacturing.

Rates Exceed 125% for India 

The US has imposed preliminary countervailing duties of 126% on Indian imports. According to a fact sheet issued by the US Commerce Department, subsidy rates were set at 125.87 percent for India, 104.38 percent for Indonesia and 80.67 percent for Laos.

These duties apply to solar cells and modules exported to the United States and are designed to offset what the department considers unfair financial support from foreign governments.

Trade figures indicate that imports from the three countries were valued at approximately USD 4.5 billion last year. These shipments accounted for nearly two-thirds of total US solar imports in 2025, highlighting the scale of exposure for the American market.

Case Initiated by US Manufacturing Coalition

The complaint was filed by the Alliance for American Solar Manufacturing and Trade. Its members include Hanwha Qcells, First Solar and Mission Solar.

The coalition has maintained that subsidised imports threaten billions of dollars in planned domestic manufacturing investments. The group argues that without trade relief, new US factories may struggle to compete with lower-priced imports.

The Alliance described the Commerce Department’s determination as an important step toward restoring fair competition, adding that American manufacturers are investing billions to rebuild domestic production capacity and create jobs, but warned that such investments could falter if unfair trade practices continue.

Company-Specific Duty Rates Announced

In addition to countrywide rates, the Commerce Department assigned company-specific duties. In India, Mundra Solar faces a duty rate of 125.87 percent. In Indonesia, PT Blue Sky Solar was assigned 143.3 percent, while PT REC Solar Energy received 85.99 percent.

For Laos, SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company were each assessed a rate of 80.67 percent. 

Trade Measures Reshape Global Solar Supply Chains

US tariff actions in recent years have significantly altered global solar trade patterns. Imports from Malaysia, Vietnam, Thailand and Cambodia declined sharply after earlier trade investigations led to high duties on products from those countries. Those four nations had previously dominated the US solar import market.

The latest measures by US authorities may support domestic manufacturing through trade enforcement. However, they may also influence global supply chains and pricing in the world’s second-largest solar market.

Adverse Impact on Indian Solar Manufacturers and Beyond

The move has the potential to inflict direct damage to $4.5 billion in annual trade from India, Indonesia, and Laos, which supplied 57%+ of US solar modules in H1 2025. 

As a result of the latest measure, various companies are adversely affected, even those that currently do not operate any supply line to the US market. Domestic solar stocks declined sharply on February 25. 

Shares of Waaree Energies and Premier Energies dropped as much as 15% during the trading session, according to stock exchange data. Vikram Solar also traded lower following the announcement. 

The countervailing duty ruling marks the first of two expected decisions in the case. The Commerce Department is scheduled to issue a separate determination next month on whether exporters from the three countries sold solar products in the US market below their production costs.

If dumping is confirmed, additional anti-dumping duties could be imposed, further raising the cost of imports and reshaping the market dynamics.