Trump slaps 126% photo voltaic import responsibility on India in menace to India-US commerce deal| Enterprise Information
US President Donald Trump has imposed a photo voltaic import responsibility of 126% on India, a transfer that threatens to derail the India-US commerce deal.
India’s photo voltaic exports to the US reached $792.6 million in 2024, a nine-fold improve from 2022 ranges. (AFP)
The US Commerce Division introduced the photo voltaic import responsibility after arriving on the conclusion that New Delhi unfairly subsidised home manufacturing of photo voltaic photovoltaic modules, a lot in order that they undercut American-made merchandise. Past India, the division set preliminary charges starting from 86% to 143% for Indonesia and 81% for Laos.
The choice comes barely weeks after New Delhi and Washington agreed on a framework for the India-US commerce deal to convey down tariff on India’s exports to 18% from 50% earlier. That was earlier than the US Supreme Courtroom quashed Trump tariffs, calling them unconstitutional. Trump then pivoted to a brand new 10% baseline responsibility on most imports, with threats to hike that to fifteen%.
Now, this newest protectionist pivot means that Trump’s “America First” coverage stays the precedence, even on the expense of strategic commerce offers.
In the meantime, Indian and American officers have postponed a three-day assembly scheduled for this week to debate the interim commerce deal.
The Photo voltaic Provide Chain
The surge in imports from India, Indonesia, and Laos—which accounted for 57% of US photo voltaic module imports within the first half of 2025—is basically seen as a bypass for Chinese language corporations. Dealing with stiff US obstacles, Chinese language producers have shifted manufacturing throughout Southeast Asia to keep up market entry.
India has been a main beneficiary of this shift. Photo voltaic imports from the nation reached $792.6 million in 2024, a nine-fold improve from 2022 ranges.
Tim Brightbill, lead legal professional for the Alliance for American Photo voltaic Manufacturing and Commerce, hailed the transfer as a victory for home funding. “These can’t succeed if unfairly traded imports are allowed to distort the market,” he stated.
Shares singed by US photo voltaic import responsibility
An absence of viable export markets will pressure Indian photo voltaic PV module makers to push their shares into the home market, leading to an oversupply.
As of January 2026, India had an put in solar-module manufacturing capability of greater than 160 GW, as in opposition to home demand of 40-45 GW. India’s photo voltaic exports to the US reached $792.6 million in 2024, a nine-fold improve from 2022 ranges.
“The preliminary US countervailing duties are a serious setback for Indian photo voltaic producers that relied closely on exports to the US market,” Rajan Kalsotra, Senior Guide at EUPD Analysis, instructed Reuters.
“With the US accounting for the overwhelming share of exports, producers now face a twin dilemma of extra capability and restricted market entry.”
🔗 Waaree, Premier scorched as US slaps 126% photo voltaic import responsibility on India
Headwinds for US photo voltaic
However for US photo voltaic corporations, the responsibility represents a big headwind. By successfully locking out Indian provide, the administration dangers driving up challenge prices at a time when the trade is already grappling with excessive rates of interest and coverage uncertainty.
A ultimate willpower on the subsidies is predicted by 6 July 2026, alongside a concurrent anti-dumping investigation.
