ISLAMABAD: The US has levied a preliminary countervailing duty (CVD) of 126% on specific Indian solar products, citing unfair subsidies, according to an Indian media report.

This move is expected to disrupt the growing momentum of solar exports from India to the US and raise concerns about increasing domestic competition and regulatory uncertainty.

On Feb. 24, the US Department of Commerce announced its preliminary affirmative determination in investigations into imports of crystalline silicon photovoltaic cells from India.

The investigation also includes parallel anti-dumping probes into solar cells from these countries.

Final determination

A final determination in the countervailing duty investigations is scheduled for July 6.

The new duties come at a time when the US already imposed a 10% across-the-board tariff under the Trump administration, further complicating trade relations.

Despite the steep tariff, many leading Indian solar manufacturers have downplayed the immediate impact.

Impact on market dynamics

However, analysts warn that the duties could disrupt trade flows, put downward pressure on domestic prices, and affect overall profitability.

Rating agency Icra highlighted that increased regulatory uncertainty could dampen export volumes, which stood at 3 GW in 2025.

Solar stocks

Crisil Intelligence added that Indian modules could become at least 30% more expensive than US-made ones, potentially impacting market dynamics.

Following the announcement, solar stocks in India dropped sharply, with Waaree Energies falling 10.47%, Premier Energies 6.27%, and Vikram Solar 5.45%, the Indian media report said.

US Department of Commerce

US imposes 126% duty on Indian solar exports, raising trade concerns