US slaps 126% duty on Indian solar panels:Alleges China routing cheap exports via India

The US Department of Commerce has imposed an initial countervailing duty of 126% on solar panels and cells imported from India, alleging that Indian manufacturers receive unfair government subsidies that harm American companies. Under the same preliminary investigation, Indonesia has been hit with the highest duty of 143%, while Laos faces a duty of 81%. The Commerce Department said the decision is based on initial findings, with a final ruling expected on July 6. If the subsidy claims are upheld, the duties will become permanent. Impact on Indian solar exports Industry experts warn that the new duties could make it extremely difficult for Indian solar exporters to survive in the US market. A 126% duty would more than double prices, pushing American buyers toward domestic suppliers or alternative countries. According to BloombergNEF, India, Indonesia and Laos together accounted for 57% of US solar module imports in the first half of 2025. India alone exported solar products worth $792.6 million (around ₹7,200 crore) to the US in 2024, nearly nine times higher than in 2022. Separate from Trump’s global tariff The new duties are separate from the 10% global tariffs recently reintroduced by US President Donald Trump, after the Supreme Court struck down an earlier tariff framework. The move has further increased uncertainty in the solar industry. Allegations of Chinese routing American manufacturers allege that Chinese companies are routing solar products through India, Indonesia and Laos to bypass US tariffs on China. Earlier, similar allegations were made involving Vietnam, Malaysia and Thailand before production reportedly shifted to other Asian countries. Experts see US market closing Vikram Bagri, an analyst at Citigroup Inc., said that with such high tariffs, the US market is now almost closed for Indian solar manufacturers. US industry welcomes decision The Alliance for American Solar Manufacturing and Trade, which had petitioned for the investigation, welcomed the decision. Its chief counsel Tim Brightbill said the move was crucial to restoring fair competition, adding that US manufacturers are investing billions of dollars to expand capacity and create jobs. Anti-dumping probe also underway The Commerce Department is also investigating anti-dumping duties, alleging that companies from India, Indonesia and Laos are selling solar cells in the US at prices below cost. The International Trade Commission is examining whether such practices are injuring domestic manufacturers.