Like a sudden storm across clear trade skies, Washington’s tariff salvo has jolted the global solar market.
A 126% Shock to Solar Trade
The administration of Donald Trump on Tuesday imposed preliminary duties of 126% on solar imports from India and several other nations, citing unfair state subsidies that disadvantage American manufacturers, according to the US Department of Commerce. Alongside India, exporters from Indonesia face tariffs ranging from 86% to 143%, while shipments from Laos will attract duties of about 81%, sharply escalating pressure on renewable energy supply chains.
US authorities concluded that government-backed incentives in India, Indonesia, and Laos allowed producers to price solar modules below fair market value. The action followed a petition by the Alliance for American Solar Manufacturing and Trade urging an investigation into alleged subsidy practices.
“Today’s finding is an important step toward restoring fair competition in the US solar market,” said Tim Brightbill, co-chair of Wiley Rein’s International Trade Practice and lead attorney for the Alliance. “American manufacturers are investing billions of dollars to rebuild domestic capacity and create good-paying jobs. Those investments cannot succeed if unfairly traded imports are allowed to distort the market,” he added, according to a Bloomberg report.
India Impact and Wider Trade Ripples
Data from BloombergNEF show India, Indonesia, and Laos accounted for 57% of US solar-module imports in the first half of 2025. After earlier tariffs targeted four Southeast Asian countries, American developers increasingly turned to these three markets. US imports of Indian solar panels reached $792.6 million in 2024 — more than nine times 2022 levels.
However, the countervailing duties apply only to solar cells made in India, not panels assembled there using imported cells. In an interview with Zee Business, Hitesh Doshi of Waaree Energies clarified that duties are based on the country of origin of solar cells. Since many Indian manufacturers import cells from low-duty jurisdictions before assembling panels for export, the overall impact may be contained. Doshi noted that only about 4% of US solar imports involve panels made with India-manufactured cells, affecting roughly 600–1,000 megawatts of exports.
The duties are separate from broader global tariffs recently struck down by the Supreme Court of the United States. The administration has since announced fresh 10% tariffs, later raised to 15% but not yet in effect. A final decision on the subsidy probe is due by July 6, while an anti-dumping investigation continues — moves that could further reshape solar trade flows.
In the race for clean energy, tariffs now cast long shadows across sunlit ambitions.
Summary
The Trump administration has imposed preliminary duties of 126% on Indian solar cell imports, citing unfair subsidies. Indonesia and Laos also face steep tariffs. While India’s solar exports to the US have surged, duties apply only to India-made cells, limiting overall impact. A final decision is expected by July 6 amid a broader anti-dumping investigation.
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