The administration of Donald Trump has imposed steep preliminary duties of 126 per cent on solar imports from India, citing unfair manufacturing subsidies. The move, announced by theUnited StatesDepartment of Commerce, marks a significant escalation in trade action targeting renewable energy supply chains. Alongside India, exporters from Indonesia face duties ranging from 86 per cent to 143 per cent, while shipments from Laos will attract levies of about 81 per cent.

US authorities concluded that state-backed incentives in these countries enabled producers to price modules below fair market value, disadvantaging domestic manufacturers.

The decision follows a petition filed by the Alliance for American Solar Manufacturing and Trade, which urged Washington to investigate subsidy practices. According to the group, unchecked imports were undermining investments in US-based production.

“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.”

The Commerce Department’s probe determined that exporters benefited from foreign subsidies, prompting countervailing duties aimed at neutralising the price advantage.

Impact On India And Global Supply Chains

India, Indonesia and Laos together accounted for 57 per cent of US solar module imports in the first half of 2025, according to BloombergNEF. Developers had increasingly turned to these markets after Washington earlier imposed heavy tariffs on four Southeast Asian countries that once dominated shipments.

In 2024, US imports of Indian solar panels were valued at $792.6 million, over nine times higher than in 2022, Commerce Department data showed.

Citi analyst Vikram Bagri noted that the elevated duty structure could effectively shut Indian manufacturers out of the US market, at least in the near term.

Broader Trade Context And What’s Next

Source: India Latest News, Breaking News Today, Top News Headlines | Times Now