The United States has imposed a preliminary duty of 126 percent on solar panels imported from India amid allegations of subsidies, triggering panic among traders. Following the tariff announcement, solar-related stocks witnessed a sharp decline. The US Department of Commerce stated that India is improperly
subsidising its manufacturers, causing harm to American domestic companies. It added that compensating for this impact would be difficult.
Apart from India, levies ranging from 81 percent to 143 percent have also been imposed on Laos and Indonesia. The decision has been taken based on a preliminary investigation. The final decision on the probe will be announced on July 6. If the subsidy allegations are proven, the tax will become permanent. The US Department of
Commerce said that subsidies provided by the Government of India to manufacturers have created unfair competition in the American market.
The purpose of these import duties is to protect American solar panel manufacturers. However, the move may also create instability in the industry and increase costs for both solar panel producers and consumers. Experts also said that this duty is different from the broader global tariffs previously imposed by President Donald Trump. The US Supreme Court had recently struck down those global tariffs. After that, the President introduced a new 10 percent tariff and warned that it could be increased to 15 percent. Solar Stocks Slide Following this decision, selling pressure has been seen in shares related to solar products. During the trading session, shares of Waaree Energies fell by up to 15 percent. The stock was later trading at Rs. 2,697, down 10.83 percent with slight recovery. Shares of Premier Energies also witnessed significant weakness and were trading at Rs.728.95, down 6.19 percent.
The stock had fallen nearly 14 percent during the session. Besides this, pressure was also observed in Vikram Solar. Different from the 10 Percent Global Tariff This duty is different from the 10 percent global tariff recently announced by Donald Trump. The US Supreme Court had last week cancelled Trump’s earlier tariff plan, following which new tariffs were introduced. This latest decision has further increased concerns within the industry.
India, Indonesia, and Laos account for 57 percent of solar panel imports into the United States. In 2024, India’s solar panel exports to the US reached $792.6 million, nine times higher than in 2022. In recent years, due to American tariffs, several developers had begun sourcing panels from these countries.
Source: Business Remedies
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