New Delhi. America has decided to impose an initial duty of 126% on the import of solar energy panels from India. According to the US Commerce Department, this step has been applied to producers from countries that have benefited from government support compared to American companies. Similarly, duty has been fixed at 86% to 143% for Indonesia and 81% for Laos.
boost domestic industry
America says that this duty has been imposed with the aim of maintaining the safety and competition of domestic solar companies. But higher tariffs could make it harder for foreign companies to access the US market and the move is also likely to increase costs.
Trump administration’s strategy
The new tariffs are separate from larger global tariffs recently struck down by the US Supreme Court. Apart from this, the Trump administration had also implemented a new tariff of 10%, which is likely to be increased to 15% later. Earlier this month, a trade agreement was signed with India, the aim of which was to reduce tension between the two countries.
Solar import scenario from India
In the first half of 2025, the US received 57% of total solar module imports from India, Indonesia and Laos. The value of solar imports from India will be approximately $792.6 million in 2024, which is almost 9 times more than in 2022. During this period, many developers started sourcing panels from South-East Asian countries.
What is the impact on the market and companies?
Experts say that such a high duty rate can make the US market challenging for Indian solar panel companies. At the same time, American solar group Alliance for American Solar Manufacturing and Trade said in support of this move that it is necessary to promote domestic production. Due to this decision, India’s solar industry may face difficulties in the American market.
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