Tariff shock continues for India as the US Commerce Department announced anti-subsidy countervailing duties on solar cells and panels imported from the South Asian country. Other countries hit with similar solar import tariffs in the same announcement are Indonesia and Laos.
According to the fact sheet posted on the US department’s website, India is now facing general subsidy rates of 125.87% for imports, while Indonesia and Laos have been hit with 104.38% and 80.67% tariffs, respectively, Reuters reported.
‘America First’ approach fuels solar tariffs
Government trade data shows that that three nations accounted for $4.5 billion in imports, account for about two-thirds of the 2025 total, as cited by Reuters. As a result, the Trump administration couldn’t help but point out that India, Indonesia and Laos had unfairly subsidised solar manufacturing.
For India in particular, the US Commerce Department has revealed that the solar imports from the South Asian country in 2024 amounted $792.6 million, which was over 9 times the figures from 2022.
As the Republican leader’s government continues its staunch “America First” push, the decision is expected to motivate US producers. Even then, the tariff impact ultimately threatens higher consumer costs.
US-India tariff confusion still in focus
The solar imports issue comes to light as a new US court ruling left several countries’ trade deals with America uncertain. Even India’s interim trade agreement with the US, which initially resulted in the country facing 18% tariffs, has now entered a new territory marked with a lack of clarity.
Trade talks set to take place between both countries this week were deferred as they continued to “study the implications” of the US Supreme Court ruling that struck down the Trump admin’s global tariffs as “illegal.”
While the initial decision brought US tariffs on Indian goods down from 50% to 18%, the Supreme Court ruling prompted Trump to propose an imposition of 15% global tariffs on all goods coming to the US.
However, this reformed tariff rate ultimately fell back to the originally proposed 10% (excluding the baseline pre-existing levies) tariff level on Tuesday (US time), finally ending a week-long confusion after the legal ruling.