The United States Commerce Department on Tuesday imposes preliminary countervailing duties of up to 125.87% on solar imports from India, citing government subsidies that officials say undercut American manufacturers and distort competition. These actions mark a significant move in enforcing US tariffs on Indian solar imports aimed at protecting domestic solar producers.
The duties apply to solar cells and panels imported from India, Indonesia and Laos after the department determines producers in those countries benefit from government support. Officials say the subsidies allow exporters to sell products at unfairly low prices in the U.S. market.
Overall subsidy rates are set at 125.87% for India, 104.38% for Indonesia and 80.67% for Laos, according to a department fact sheet. The decision follows a petition filed last year by the Alliance for American Solar Manufacturing and Trade, a coalition of U.S.-based producers seeking trade relief.
Trade data show imports from the three countries total about $4.5 billion last year, accounting for roughly two-thirds of total U.S. solar imports in 2025. The ruling represents the first of two determinations in the case. A separate decision next month will address whether exporters sold products in the United States below production costs, a practice known as dumping, and will further define the scope of US tariffs on Indian solar imports.
Commerce Department Sets Preliminary Subsidy Rates
The Commerce Department assigns company-specific rates in addition to countrywide duties. In India, Mundra Solar faces a rate of 125.87%.
In Indonesia, PT Blue Sky Solar receives a duty of 143.3%, while PT REC Solar Energy is assigned 85.99%. In Laos, SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company each are assessed 80.67%.
Officials say the rates reflect the extent of subsidies identified during the investigation. Countervailing duties are designed to offset financial assistance provided by foreign governments to exporters.
US Manufacturers Welcome Move To Protect Investments
The complaint was brought by the Alliance for American Solar Manufacturing and Trade, which includes Hanwha Qcells, First Solar and Mission Solar. The group argues subsidized imports threaten billions of dollars in planned domestic manufacturing investments.
Tim Brightbill, lead attorney for the alliance, calls the decision “an important step toward restoring fair competition.” He says American manufacturers are investing billions of dollars to rebuild domestic capacity and create jobs, and those efforts cannot succeed if unfairly traded imports distort the market, highlighting the impact of US tariffs on Indian solar imports.
U.S. tariffs in earlier trade cases reshape global solar supply chains. Imports from Malaysia, Vietnam, Thailand and Cambodia fall sharply after previous investigations result in high duties on products from those countries.
Exporters Push Back As Trade Case Continues
Some exporters dispute the findings. Matthew Nicely, an attorney representing SolarSpace, says the assigned rate does not reflect the company’s experience or a realistic comparison.
“This rate does not reflect the company’s experience or even a realistic analogue,” Nicely says in an email.
Other companies named in the decision do not immediately respond to requests for comment.
The case continues as the Commerce Department prepares its final determinations. If both subsidy and dumping findings are affirmed and the U.S. International Trade Commission determines domestic industry is harmed, the duties could become permanent, , US tariffs on Indian solar imports could become permanent, shaping the future of U.S. solar trade policy.
The decision underscores ongoing trade tensions in the global solar industry as countries compete to expand renewable energy production while protecting domestic manufacturers.
