US Imposes 125% Duty On Indian Solar Imports
The United States has imposed preliminary countervailing duties of about 125% on solar cells and modules imported from India, following a determination that Indian manufacturers benefited from government subsidies. The move is expected to impact India’s growing solar exports to the US market.
US Imposes 125% Duty On Indian Solar Imports
The US Department of Commerce announced a preliminary countervailing duty rate of approximately 125% on solar panels and cells from India. The measure is aimed at offsetting alleged subsidisation that, according to US authorities, allowed Indian exporters to sell products at an unfair advantage in the American market.
Once the preliminary findings are published, US customs authorities will begin collecting cash deposits based on the notified rate. The investigation is part of a broader review of solar imports from multiple countries.
Impact On Indian Solar Export Industry
India has emerged as a significant supplier of solar modules and cells to the United States in recent years, with exports rising sharply. The new duties are likely to increase landed costs for Indian products, potentially reducing their competitiveness in the US market.
Indian manufacturers may need to reassess export strategies, explore alternative markets or consider setting up manufacturing facilities closer to demand centres to mitigate the impact of trade barriers.
Trade Implications And Next Steps
The preliminary duty is part of an ongoing investigation, and a final determination will follow after further review. If confirmed, the definitive duties could remain in force for several years.
The development comes amid broader trade negotiations between India and the United States, adding another layer of complexity to bilateral economic engagement.
