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US Proposes Up to 126% Tariffs on Solar Modules Imported from India
US Solar Panel Tariffs: The US has proposed initial tariffs of up to 126% on solar imports from India, alleging that subsidies were outcompeting US producers with lower prices. Hefty tariffs have also been imposed on Indonesia and Laos, potentially making it difficult for Indian solar manufacturers to access the US market.
The US Department of Commerce is set to impose initial tariffs ranging from 126% on solar panels imported from India. According to them, an investigation revealed that India provided subsidies to its solar panel manufacturers, which aided Indian exporters in selling their goods at a cheaper price than that of US manufacturers.
As part of this investigation, initial tariffs ranging from 86% to 143% have been imposed on Indonesia and approximately 81% on Laos. The US administration argues that foreign subsidies were creating unfair competition in the US market for solar products from these countries.
While these tariffs are said to be aimed at boosting the domestic solar industry, they are also feared to increase costs and deepen uncertainty in the solar sector. This could lead to higher prices for both solar project developers and consumers.
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These proposed tariffs are separate from the Trump administration's broader global tariffs, which were recently struck down by the US Supreme Court. Following this, the administration imposed new tariffs of 10%, with the potential to increase them to 15%. This month, a bilateral trade agreement was also reached between the US and India aimed at reducing trade tensions.
According to data, approximately 57% of US solar module imports in the first half of 2025 came from India, Indonesia, and Laos. Previously, developers had increased sourcing from these countries after the US imposed stringent tariffs on some Southeast Asian countries.
According to the Commerce Department, the US imported approximately $792.6 million worth of solar panels from India in 2024, more than nine times the amount in 2022. Experts believe that the imposition of such high tariffs could virtually close the US market for Indian solar panel manufacturers.
The US solar industry group, the Alliance for American Solar Manufacturing and Trade, had called for this investigation. The group says this step is necessary to protect US manufacturing capacity, investment, and jobs.
The Commerce Department's final report is expected to be released on July 6. In parallel, an anti-dumping investigation is underway into solar cells imported from India, Indonesia, and Laos, which could impact the global solar supply chain and trade relations.
