How Trump's 123% duty will hurt India's solar industry
What's the story
The United States has moved to impose a hefty 123.04% preliminary anti-dumping duty on solar cell and module imports from India. The decision, announced by the US Department of Commerce last week, comes after an investigation into pricing practices and government support mechanisms related to solar exports from several Asian countries. The move is likely to have a major impact on Indian manufacturers who have been exporting to the US market.
Pricing concerns
Preliminary findings of unfair pricing in the US market
The US Department of Commerce's preliminary findings indicate that solar cells and modules from India were being sold at prices below their fair value in the American market. This has led to the imposition of a preliminary anti-dumping duty of 123.04% on Indian imports. The investigation also covered Indonesia and Laos, which have been slapped with respective duties of 35.17% and 22.46%.
Trade dispute
Who initiated the probe?
The probe was launched after a petition was filed in July 2025 by the Alliance for American Solar Manufacturing and Trade, a group representing domestic industry interests. Its members include First Solar, Hanwha's solar division Qcells, and privately held firms Talon PV and Mission Solar. The Alliance claimed that producers in these countries are dumping solar cells and modules into the US market at unfairly low prices.
Trade remedy
What is anti-dumping duty?
An anti-dumping duty is a trade remedy imposed when authorities find that imported goods are being sold at unfairly low prices. This often happens when products are exported below their production cost or home market price. Such practices, known as "dumping," can hurt domestic industries by letting imported goods gain market share through artificially lower pricing. To counter this, governments investigate and impose additional duties if both dumping and injury to local industry are established.
Tariff impact
Cumulative impact of tariffs on Indian manufacturers
The anti-dumping duty is just one part of a wider range of trade measures impacting solar imports. In February, the US had already imposed preliminary countervailing duties (CVDs) on the same countries to offset alleged government subsidies. For Indian imports, these CVDs were estimated at around 125.87%. When combined with the newly announced anti-dumping duty of 123.04%, the cumulative tariff burden exceeds 234% for most exporters.
Market shift
Indian manufacturers seek alternative markets
The imposition of high tariffs has led Indian solar manufacturers to rethink their export strategies. With access to the US market effectively restricted, companies are redirecting shipments to other regions such as Europe and West Asia. India's domestic renewable energy expansion also offers another avenue with a target of achieving 500 GW of non-fossil fuel capacity by 2030.