Solar Shockwave: U.S. Slaps 126% Tariff on Indian Imports in "America First" Crackdown

The U.S. Commerce Department has placed preliminary countervailing duties (CVD) of 125.87% on solar cells and panels imported from India, starting February 24, 2026. This action, prompted by a request from the Alliance for American Solar Manufacturing and Trade, is meant to counter what are claimed to be government subsidies that have disadvantaged U.S. producers. The duties also affect other suppliers, with rates around 104.38% for Indonesia and 80.67% for Laos. Together, these nations accounted for over 57% of U.S. solar module imports in the first half of 2025.

This enforcement targets major companies like Mundra Solar (Adani Group), subjecting them to the 125.87% duty after a rise in imports valued at USD 792.6 million in 2024. These penalties are separate from standard tariffs and align with the administration's America First plan to strengthen local manufacturing. The decision may damage recent improvements in U.S.-India trade, essentially closing the U.S. market to these exporters while final decisions are pending later this year.

The market responded quickly, with Indian solar stocks like Waaree Energies, Vikram Solar, and Premier Energies dropping by up to 15%. Experts now see the U.S. market as almost impossible to reach for these Indian companies because of the high price gap. This situation benefits U.S. solar manufacturers by removing low-cost competition but creates worries about rising installation costs for U.S. energy projects.