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The Trump administration fixed an initial duty of 126% on the import of solar energy from India. The US Commerce Department also set preliminary tariffs ranging from 86% to 143% for Indonesia and 81% for Laos. These rates are based on testing foreign government aid. America says that this allowed exporters from these countries to sell goods at lower prices than American solar companies.

Although the purpose of these tariffs is to benefit domestic companies, it has increased confusion in an industry which US President Donald Trump does not like much. This step may increase costs for both producers and consumers.

Tax separate from global tariff

These tariffs will be separate from Trump's massive global tariffs, which were struck down by the US Supreme Court last week. In response, Trump imposed new tariffs of 10% and said they could be increased to 15%. The President had also signed a trade agreement with India earlier this month, the purpose of which was to reduce trade tension between the two countries.

import of solar

According to a Bloomberg report, 57% of the total imports of solar modules in the US in the first half of 2025 came from India, Indonesia and Laos. Some developers had started sourcing panels from South-East Asian countries, as the US had imposed heavy tariffs on four South-East Asian countries, which previously accounted for the bulk of imports. According to the Commerce Department, the total value of solar energy imports from India in 2024 was $792.6 million, which is more than 9 times that of 2022.

Citi analyst Vikram Bagri wrote in a research note on Tuesday that the US market may almost be closed for Indian solar panel companies due to high duty rates. The Alliance for American Solar Manufacturing and Trade, a US solar group, has called for the Commerce Department to investigate government aid. He says that this investigation is necessary to save American manufacturing.