US imposes 126% countervailing duties on Indian solar imports, raises subsidy concerns

Trump’s 126% antidumping duty may disrupt solar export in near term, manufacturers to remain focused on domestic market

• US to impose tariffs on solar imports from India, Indonesia, Laos
• India faces 125.87%, Indonesia 104.38%, Laos 80.67% subsidy rates
• Move counters government subsidies harming US manufacturers

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The US Commerce Department said it will levy countervailing duties on solar cells and panels imported from companies in India, Indonesia, and Laos, concluding that producers in the three countries benefited from government subsidies that undercut American manufacturers.

According to a fact sheet issued by the department, overall subsidy rates were set at 126% for India, 104% for Indonesia, and 80% for Laos. The move follows a petition filed last year by a coalition of US solar manufacturers seeking relief from what they describe as unfairly traded imports.

Trade data show that imports from the three countries were valued at about $4.5 billion last year, accounting for roughly two-thirds of total US solar imports in 2025.

The action marks the first of two determinations expected in the case. The Commerce Department is due to issue a separate ruling next month on whether exporters from the three nations sold products in the US market at prices below their production costs.

The complaint was brought by the Alliance for American Solar Manufacturing and Trade, which includes South Korea’s Hanwha Qcells, Arizona-based First Solar and Texas-based Mission Solar. The group argues that subsidised imports threaten billions of dollars in new domestic manufacturing investments.

Tim Brightbill, lead attorney for the Alliance, hailed the decision as “an important step toward restoring fair competition.” "American manufacturers are investing billions of dollars to rebuild domestic capacity and create good-paying jobs. Those investments cannot succeed if unfairly traded imports are allowed to distort the market," he said in a statement.

Beyond the countrywide rates, the department assigned company-specific duties. Mundra Solar in India faces a rate of 125.87%. In Indonesia, PT Blue Sky Solar was assigned 143.3%, while PT REC Solar Energy received 85.99%. In Laos, SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company were each assessed 80.67%.

Matthew Nicely, an attorney representing Solarspace, said the firm disagreed with the findings. "This rate does not reflect the company's experience or even a realistic analogue," Nicely said in an email.

Other companies named in the decision did not immediately respond to requests for comment. US tariffs have previously reshaped global solar supply chains. Imports from Malaysia, Vietnam, Thailand, and Cambodia dropped sharply after earlier trade cases resulted in high duties on products from those countries, which had once dominated the US market.