India-US trade deal at risk? Trump imposes massive 126% duty on solar imports

The US Commerce Department said the duties were necessary because India was unfairly subsidizing its domestic solar manufacturing, giving exporters an advantage that undercut US producers.

According to the department, the rates are based on foreign subsidies that allow exporters from these countries to sell products at lower prices, making it difficult for US producers to compete.

Similar duties of 86% to 143% were imposed on Indonesia and Laos. The move is intended to create a level playing field for American manufacturers.

The announcement comes shortly after India and the US signed a trade framework reducing tariffs on Indian goods from 50% to 18%.

Following a Supreme Court ruling that struck down prior tariffs, the US had imposed a baseline 10% tariff with the option to raise it to 15%.

India has been a major supplier of solar cells and modules to the US, especially after Washington restricted imports linked to China. Indian solar exports to the US reached $792.6 million in 2024, almost nine times the 2022 level, making the US the primary destination for India’s solar modules.

The new duties have also postponed a three-day India-US trade meeting that was scheduled to discuss the trade deal. With ongoing trade negotiations and global tariffs, the future of Indian solar exports to the US remains uncertain.