Donald Trump has imposed preliminary duties of 126% on solar imports from India. The move signals that his “America First” policy still takes priority. It could also strain a potential trade deal with the United States.
The US Commerce Department announced the tariffs after finding that New Delhi subsidized domestic manufacturers. Officials said these subsidies let exporters undercut American producers. The department also set preliminary duties of 86% to 143% on imports from Indonesia. It imposed an 81% rate on goods from Laos.
The decision follows a recent framework deal between Washington and New Delhi. The agreement aimed to cut tariffs on Indian exports to 18% from 50%. Earlier, the US Supreme Court struck down Trump-era tariffs as unconstitutional. He then introduced a 10% baseline duty on most imports. He also warned he could raise it to 15%. These steps highlight his continued push for protectionist policies during trade talks.
Solar Supply Chain Faces New Trade Pressures
Imports from India, Indonesia, and Laos made up 57% of United States solar module purchases in the first half of 2025, and analysts widely view the surge as a workaround used by China-based manufacturers. To avoid strict US trade barriers, these companies shifted production to Southeast Asia to preserve access to the American market.
India has emerged as a major beneficiary of this shift, with US solar imports from the country climbing to $792.6 million in 2024—about nine times higher than in 2022. Tim Brightbill, lead counsel for the Alliance for American Solar Manufacturing and Trade, praised the decision and said domestic investment cannot succeed if unfairly traded imports distort the market.
Tariffs Create New Obstacles for US Solar
The duty poses a major challenge for solar companies in the United States, as the policy effectively blocks supplies from India and could push project costs higher while the industry already struggles with elevated interest rates and policy uncertainty. Regulators expect to issue a final ruling on the subsidy findings by 6 July 2026 alongside a parallel anti-dumping probe.
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