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CommoditiesMedium•27 February 2026•

1 min read

U.S. Imposes 126% Preliminary Tariff on Indian Solar Imports

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Key Facts

1The U.S. Department of Commerce imposed a 126% preliminary countervailing duty on Indian solar cells and modules.

2The decision follows a complaint by the AASMT coalition, including First Solar and Hanwha Qcells, alleging Indian firms benefit from unfair government subsidies.

The U.S. Department of Commerce has announced a preliminary countervailing duty of 126% on solar cells and modules imported from India to counter alleged unfair subsidies. This decision follows a formal complaint by the AASMT coalition, which includes major industry players like First Solar and Hanwha Qcells. The coalition argues that Indian manufacturers benefit from government support that allows them to undercut domestic U.S. pricing. Analysts expect these massive levies to effectively block Indian exporters from the U.S. market, potentially worsening overcapacity issues within India's solar sector. While the move is a significant victory for U.S.-based manufacturers, it may increase component costs for domestic solar installers and renewable energy developers. Market participants are closely monitoring the impact of these tariffs on clean energy ETFs and global supply chain dynamics.