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The move has unsettled investors, leading to a fall in the share prices of Indian solar equipment makers
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Waaree Energies stated that the tariff would not materially affect its business, while Vikram Solar said it expects only a limited impact
The United States has announced a 126 per cent tariff on certain solar products imported from India, marking a fresh strain in trade ties between the two countries. The decision was unveiled by the administration of Donald Trump, with American officials alleging that Indian manufacturers benefit from heavy government subsidies.
According to the US Commerce Department, Indian solar panel producers receive subsidies amounting to 126 per cent. Similar duties have also been imposed on other Asian exporters. Indonesia faces initial tariffs ranging from 86 to 143 per cent, while Laos is subject to duties of 81 per cent. The US claims that such subsidies enable foreign companies to sell solar modules at unfairly low prices, undercutting American manufacturers.
The Indian government has not yet issued an official response to the new tariff measures
The announcement comes only weeks after New Delhi and Washington agreed on a framework for an interim bilateral trade deal. Under that arrangement, the US had proposed lowering tariffs on most Indian imports from 50 per cent to 18 per cent. However, following a ruling by the US Supreme Court, that proposal lost relevance. The fresh tariff on solar goods has now added to the uncertainty surrounding trade negotiations.
India is currently the fifth-largest supplier of solar modules to the US market. In 2024, the US imported 54 gigawatts (GW) of solar modules, of which India accounted for 4.4 GW — roughly 8 per cent of total imports.
