US announces preliminary 126 pc countervailing duty on imports of certain Indian solar goods

New Delhi: The US has announced preliminary countervailing duty of 125.87 per cent on imports of certain Indian solar goods alleging that the products are unfairly subsidised by New Delhi. The US has also announced different duties on the imports of 'Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules' from 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)," a US order has said.

These duties are different from the 10 per cent tariffs announced by the Trump administration on all countries from February 24.

According to the order, solar imports from India into the US increased to USD 792.6 million in 2024 from USD 83.86 million in 2022.

"Unless postponed, the final determination in these CVD investigations are currently scheduled to be issued on July 6, 2026. Commerce (department) is also conducting concurrent anti-dumping duty investigations of solar cells from India, Indonesia, and Laos," it said.

Why The US Imposed The Duties

Tim Brightbill, co-chair of Wiley Rein’s International Trade Practice and lead attorney for the Alliance talking about the US imposed duties said, “Today’s finding is an important step toward restoring fair competition in the US solar market.” He added, “American manufacturers are investing billions of dollars to rebuild domestic capacity and create good-paying jobs. Those investments cannot succeed if unfairly traded imports are allowed to distort the market.”

Countervailing duties help companies to protect them from increase in subsidised imports.