US Slaps 126% Preliminary Duty on Indian Solar Imports, Shares of Domestic Firms Slide

New Delhi/Washington, February 25, 2026: The United States has imposed a steep 126 per cent preliminary duty on solar module imports from India, alleging that the products benefit from unfair government subsidies that distort competition in the American market.
The move follows a petition filed last year by a group of US solar manufacturers seeking protection from what they described as “unfairly traded imports.” The US Commerce Department, in a factsheet, said similar duties have also been imposed on Indonesia at 104.38 per cent and Laos at 80.67 per cent.
The Trump administration argued that subsidies extended by foreign governments allowed companies to sell solar modules in the US at prices below their cost of production, thereby undermining domestic manufacturers. Officials maintained that the action is aimed at protecting American industry and ensuring a level playing field.
Trade data show that 57 per cent of US solar module imports in the first half of 2025 came from India, Indonesia and Laos. After Washington earlier levied high duties on four Southeast Asian countries that had accounted for a majority of imports, several developers reportedly shifted sourcing to these three nations.
The development triggered political reactions in India. Congress leader Jairam Ramesh questioned the timing and implications of the decision, especially in the context of the much-publicised India-US trade engagement under President Donald Trump. In a post on X, he termed the duty “extraordinary” and alleged that the trade arrangement appeared “distinctly one-sided,” urging the government to reconsider its approach.
The announcement also weighed heavily on Indian solar stocks. Shares of Waaree Energies fell as much as 14.2 per cent to ₹2,591.1 on the NSE in early trade. Premier Energies dropped 10 per cent to ₹699.35 before recovering some losses, while Vikram Solar declined over 7.5 per cent to ₹171 during the session.
Market analysts said the duties could benefit US manufacturers in the short term but may also push up solar installation costs for American consumers and project developers. The preliminary nature of the duty means further investigations and potential revisions could follow in the coming months.