US imposes preliminary 125.87 pc countervailing duty on certain Indian solar imports

The United States has announced a preliminary countervailing duty (CVD) of 125.87 per cent on imports of certain Indian solar products, alleging that the goods benefit from unfair government subsidies, according to an official order.

The duty applies to imports of “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules”, a key category of solar equipment widely traded between the two countries. The US Department of Commerce said the measure forms part of its ongoing investigations into solar cell imports from India, Indonesia and Laos.

“On February 24, 2026, the US Department of Commerce announced its preliminary affirmative determinations in the countervailing duty investigations of crystalline silicon photovoltaic cells, whether or not assembled into modules (solar cells), from India, Indonesia, and the Lao People's Democratic Republic (Laos),” the order said.

The duties are separate from the 10 per cent tariffs announced by the Donald Trump administration on all countries from 24 February, indicating a broader trade action focused specifically on alleged subsidy practices in the solar manufacturing sector.

According to the Commerce Department’s findings, solar imports from India to the US surged sharply in recent years, rising to $792.6 million in 2024 from $83.86 million in 2022. The investigation seeks to determine whether such growth has been supported by subsidies that could disadvantage American manufacturers.

“Unless postponed, the final determination in these CVD investigations are currently scheduled to be issued on July 6, 2026. Commerce is also conducting concurrent anti-dumping duty investigations of solar cells from India, Indonesia, and Laos,” the order stated.

Countervailing duties are typically imposed to offset subsidies provided by exporting countries and to protect domestic industries from what authorities view as unfairly priced imports.

There was no immediate reaction from the Indian government or domestic solar manufacturers on the preliminary decision. Trade experts said the outcome of the final determination could have significant implications for India’s fast-growing solar exports to the US market, which has emerged as a key destination amid global efforts to expand renewable energy capacity.