Tensions escalate as Washington slaps India, Indonesia and Laos with steep solar tariffs, reshaping global energy markets and sparking uncertainty over future US trade deals.
The United States (US) has announced sweeping countervailing duties on solar cells and panels imported from India, Indonesia and Laos, citing unfair subsidies in the sector. The decision, issued by the US Commerce Department, places India at the highest rate, with duties of 125.87 per cent. Indonesia and Laos will face tariffs of 104.38 per cent and 80.67 per cent, respectively.
According to official trade data, the three countries together accounted for around two-thirds of US solar imports in 2025, valued at approximately $4.5 billion. India’s exports alone reached $792.6 million in 2024, a sharp rise compared with 2022 figures. The department argued that the subsidies provided by these governments distorted competition and undermined domestic producers.
The move aligns with the Trump administration’s ‘America First’ trade policy, which has consistently sought to bolster US manufacturing. Officials claim the tariffs will encourage domestic solar production, though industry analysts warn that higher costs could ultimately be passed on to consumers.
The announcement comes amid broader trade uncertainty. A recent US Federal Court ruling struck down global tariffs previously imposed by the administration, labelling them ‘illegal.’ This has left several trade agreements, including India’s interim deal with Washington, in limbo. That agreement had initially reduced tariffs on Indian goods from 50 per cent to 18 per cent, but subsequent proposals for new global levies created confusion.
Talks between US and Indian officials scheduled for this week were postponed as both sides assess the implications of the ruling. While the administration briefly floated a 15 per cent global tariff, the rate was later revised to 10 per cent, excluding existing duties.
