New Delhi: The Trump administration has significantly raised tariffs on solar imports from India, imposing an initial duty of 126%. This move comes amid allegations that India provided unfair subsidies to its solar manufacturing sector. According to The Economic Times, the decision is aimed at protecting American manufacturers but could increase the cost of clean energy projects in the United States.
The U.S. Department of Commerce has also imposed initial duties ranging from 86% to 143% on solar imports from Indonesia and 81% from Laos. The administration claims these countries have benefited from government subsidies, allowing their solar products to be sold in the U.S. at prices far below domestic producers. The increased tariffs are intended to level the playing field and support U.S. solar manufacturers.
Tariffs Different from Previous Measures
These duties are separate from the broad global tariffs recently struck down by the U.S. Supreme Court. Earlier this month, Trump issued new 10% tariffs, threatening to raise them to 15%. The current duties are based on a petition from the Alliance for American Solar Manufacturing and Trade. The announcement comes shortly after a bilateral trade agreement between India and the U.S., intended to ease economic tensions.
India’s Role in U.S. Solar Imports
Data from BloombergNEF shows that India, Indonesia, and Laos accounted for 57% of U.S. solar module imports in the first half of 2025. After earlier duties on other Southeast Asian countries, developers had shifted sourcing to these markets. In 2024, solar imports from India were valued at $792.6 million, nine times higher than in 2022.
Market Impact and Expert Views
Citi analyst Vikram Bagri warns that these high tariffs could effectively block Indian solar manufacturers from the U.S. market. Meanwhile, Tim Brightbill, attorney for the Alliance, maintains that the move is necessary to ensure fair competition and protect billions of dollars of investment and jobs in America.
Developers, however, fear that the tariffs could drive up solar project costs, potentially slowing U.S. renewable energy targets. The Department of Commerce is expected to deliver its final decision on the Alliance’s investigation on July 6, 2026, with anti-dumping reviews on solar cells from India, Indonesia, and Laos also underway.