US Imposes 126% Solar Tariffs on India, Indonesia, and Laos

The U.S. Department of Commerce imposed preliminary countervailing duties on crystalline silicon photovoltaic cells and modules from India, Indonesia, and Laos starting February 24, 2026. The department set a preliminary duty rate of 125.87% for India, 80.67% for Laos, and rates for Indonesia ranging from 85.99% to 143.30%. These levies, which follow a petition by the Alliance for American Solar Manufacturing and Trade, aim to offset government subsidies that the US claims distort competition and injure domestic producers.

In India, the duties were triggered in part by the refusal of Adani Group subsidiaries, Mundra Solar Energy and Mundra Solar PV, to cooperate with the probe, leading to an "Adverse Facts Available" penalty. The US also cited India's heavy reliance on Chinese imports. These tariffs are additional to a broad 10% tariff imposed by the administration of Donald Trump on all countries.

Shares of Indian manufacturers, including Waaree Energies Ltd and Premier Energy PLC, initially fell between 8% and 12% before recovering as firms clarified that duties apply to the country of origin of the cells, not the module assembly. Waaree Energies Ltd is mitigating risk by expanding US manufacturing capacity to 4.2 GW, while Premier Energy PLC reports minimal US exposure. The Government of India has declined to intervene directly, advising companies to seek legal recourse. Industry leaders now hope a proposed bilateral trade deal will supersede these duties before the final determination on July 6, 2026.