The US Commerce Department has announced preliminary countervailing duties on solar cells and panels imported from India, Indonesia, and Laos, citing unfair government subsidies. The move could reshape global solar supply chains, with steep rates exceeding 100% for India and Indonesia, and over 80% for Laos.
In a significant trade development, the US Commerce Department has imposed preliminary countervailing duties on solar imports from India, Indonesia, and Laos. The decision follows investigations into whether manufacturers in these countries benefited from government subsidies that distort fair competition.
Key Highlights
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India faces duties of 125.87% on solar cells and panels, reflecting the department’s assessment of substantial subsidy support
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Indonesia’s imports will be subject to countervailing duties of 104.38%, marking one of the highest rates in recent trade actions
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Laos, though a smaller exporter, has been hit with duties of 80.67%, signaling Washington’s intent to scrutinize all players in the sector
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The preliminary ruling stems from petitions filed by US solar manufacturers, who argue that subsidized imports undermine domestic industry competitiveness
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India’s solar exports to the US have grown sharply, rising from 3% in 2024 to 11% in 2025, making it a key alternative supplier amid ongoing trade disputes with China
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Vietnam and Malaysia remain strong competitors in the US solar market, but the new duties could shift demand dynamics further
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The Commerce Department’s preliminary decision will be followed by a final determination later this year, after further review and hearings
This announcement underscores Washington’s broader strategy of tightening trade enforcement in renewable energy, a sector critical to both climate goals and industrial policy. For India, Indonesia, and Laos, the duties pose immediate challenges to export competitiveness, while US manufacturers may see relief from subsidized competition.
Sources: Reuters via Yahoo Finance, The Economic Times, Outlook Business