Trump imposes steep 126% tariff on solar panels from India
What's the story
The Donald Trump administration has imposed preliminary tariffs of 126% on solar imports from India. The move comes after the US Commerce Department concluded that India had unfairly subsidized its manufacturing sector. The department also proposed similar duties on Indonesia (86%-143%) and Laos (81%) over similar concerns. These tariffs are aimed at protecting domestic manufacturers but could increase costs for producers and consumers alike.
Market impact
US market largely unavailable for Indian manufacturers
The high tariff rates could render the US market largely inaccessible to Indian solar panel manufacturers. "The relatively high duty rates will make the US market largely unavailable for Indian solar panel manufacturers," Citi analyst Vikram Bagri said in a research note. The tariffs are different from Trump's global tariffs, which were recently struck down by the US Supreme Court. Solar imports from India were valued at $792.6 million in 2024, over nine times the value in 2022.
Investigation request
US group had requested the Commerce Department to investigate subsidies
The Alliance for American Solar Manufacturing and Trade, a US solar group, had requested the Commerce Department to investigate these subsidies. "Today's finding is an important step toward restoring fair competition in the US solar market," Tim Brightbill, co-chair of Wiley Rein's International Trade Practice and lead attorney for the Alliance said. The final determination on this investigation is expected to be issued by July 6.