US Commerce Department Imposes High Duties on Indian Solar Imports Amidst Shifting Trade Dynamics

The US Commerce Department has imposed preliminary countervailing duties of 126% on solar imports from India, citing unfair subsidies granted by the Indian government. This action, taken in February 2026, follows a petition from the Alliance for American Solar Manufacturing and Trade, alleging that Indian subsidies distort the US solar market and harm domestic manufacturers. Similar duties were also levied on imports from Indonesia (86% to 143%) and Laos (81%).

Background: US-India Trade Tensions and Solar Tariffs

This decision arrives in the wake of a complex period of trade negotiations and policy shifts between the US and India. Just weeks prior, in early February 2026, a bilateral trade deal was struck aimed at reducing economic tensions . However, this modern tariff action highlights ongoing challenges in the US solar industry.

The duties are distinct from the broader tariffs previously imposed by the Trump administration, which were recently struck down by the US Supreme Court. Following the Supreme Court ruling, President Trump enacted new 10% tariffs, with the potential to increase to 15% .

Impact on the Solar Industry and Trade Flows

India accounted for a significant portion of US solar module imports, representing 57% alongside Indonesia and Laos in the first half of 2025, according to BloombergNEF. Some US developers had increased sourcing from these countries after previous duties were imposed on other Southeast Asian nations.

In 2024, solar imports from India reached $792.6 million, a substantial increase from $89.8 million in 2022, according to the Commerce Department. Analysts at Citi predict that the high duty rates will effectively limit access to the US market for Indian solar panel manufacturers .

Industry Response

The Alliance for American Solar Manufacturing and Trade, which petitioned for the investigation, welcomed the Commerce Department’s decision. Tim Brightbill, co-chair of Wiley Rein’s International Trade Practice and lead attorney for the Alliance, stated that the duties are “an important step toward restoring fair competition in the US solar market” and will support investments in domestic manufacturing and job creation.

Next Steps

The Commerce Department is scheduled to issue its final determination on the investigation on July 6, 2026. Concurrently, an antidumping duty probe of solar cells imported from India, Indonesia and Laos is also underway.

Key Takeaways

• The US Commerce Department has imposed significant countervailing duties on solar imports from India, Indonesia, and Laos.
• These duties are a response to allegations of unfair subsidies and aim to protect US solar manufacturers.
• The action occurs amidst ongoing trade negotiations and policy shifts between the US and India.
• The high duty rates are expected to significantly impact Indian solar panel manufacturers’ access to the US market.