Solar stocks crash 14% as Trump tariffs hit Indian exports
What's the story
Shares of Indian solar and renewable energy companies have taken a major hit in early trade today. The fall comes after the US imposed heavy countervailing duties on solar imports from India. Waaree Energies saw their stocks plummet by as much as 14.6% and Premier Energies by over 12% in morning trade. The move by the US Commerce Department comes amid a wider trade case covering imports from India, Indonesia and Laos.
Tariff details
US imposes heavy tariffs on solar imports from India
The US Commerce Department has imposed preliminary countervailing duties of about 126% on solar cell and panel imports from India. The move is based on allegations of unfair government subsidies. Other countries such as Indonesia and Laos are also part of this trade case, with the US imposing provisional tariffs ranging from 86% to 143% for Indonesia and setting it at 81% for Laos.
Market impact
Waaree Energies, Premier Energies witness steep decline
The imposition of US tariffs has led to a steep decline in the shares of Indian solar and renewable energy companies. Waaree Energies's shares fell by as much as 14.6% to ₹2,580.5 in early trade today, deepening losses after hitting the lower circuit earlier in the session. Premier Energies's stock also witnessed a decline of over 12% at ₹681.3, extending its fall from the opening bell.
Sector-wide impact
Other solar stocks also feel the heat
The impact of US tariffs wasn't limited to Waaree Energies and Premier Energies. Other solar stocks also witnessed a fall, albeit not as steep. Vikram Solar's shares fell by nearly 7%, while Waaree Renewable Technologies's shares fell by over 6%. Solex Energy's shares slipped by nearly 5% and Saatvik Green Energy's shares fell by nearly 3%.
Tariff justification
US justifies steep tariffs amid manufacturer complaints
The US Commerce Department has justified the steep tariffs by saying they were based on foreign subsidies that allowed exporters to undercut domestic solar manufacturers. The decision comes after a petition was filed last year by the Alliance for American Solar Manufacturing and Trade, which includes Hanwha Qcells, First Solar and Mission Solar. They sought relief from what they called unfairly subsidized imports. Solar imports from India were valued at $792M in 2024, over nine times the value in 2022.