US Imposes Hefty Duties on Indian Solar Imports

In a significant trade development, the United States has announced a preliminary countervailing duty of 125.87% on imports of specific solar goods from India, citing unfair subsidies provided by New Delhi. The duties also extend to similar imports from Indonesia and Laos, as per a US Department of Commerce announcement dated February 24, 2026.

The decision builds on existing tariffs imposed during the Donald Trump administration, which included a 10% duty on solar imports from all countries. Notably, US imports of Indian solar products surged to $792.6 million in 2024 from $83.86 million in 2022, highlighting the escalating trade tensions.

Concurrently, India is ramping up efforts to enhance its domestic solar manufacturing capacity. Through various government schemes and a production-linked incentive framework, India aims to reduce reliance on imports, particularly from China, and boost local production to support its growing renewable energy sector.