US Slaps 126 Percent Countervailing Duties on Indian Solar Imports Over Subsidy Concerns

The US Commerce Department has announced steep countervailing duties on solar cells and modules imported from India, Indonesia, and Laos, citing unfair government subsidies that allegedly undercut American manufacturers.

According to the department’s preliminary findings, subsidy rates have been set at 125.87 percent for India, 104.38 percent for Indonesia, and 80.67 percent for Laos. The decision follows a petition filed last year by the Alliance for American Solar Manufacturing and Trade, a coalition of US solar producers.

Trade data shows imports from the three countries were worth about USD 4.5 billion in 2025, accounting for nearly two-thirds of total US solar imports.

The coalition includes Hanwha Qcells, First Solar, and Mission Solar, which argue that subsidised imports threaten billions of dollars in planned domestic manufacturing investments.

This marks the first of two key determinations in the case. The Commerce Department is expected to issue a second ruling next month on whether exporters sold products in the US at prices below production costs (anti-dumping).

Company-specific duties were also announced. India’s Mundra Solar faces a rate of 125.87 percent, Indonesia’s PT Blue Sky Solar 143.3 percent, and PT REC Solar Energy 85.99 percent, while SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company in Laos were assigned 80.67 percent  each.

The move is expected to further reshape global solar supply chains, following earlier US tariffs that sharply reduced imports from Malaysia, Vietnam, Thailand, and Cambodia.