US sets preliminary duties on solar imports from India, Indonesia and Laos
In a significant move to shield domestic manufacturers from foreign competition, the US Department of Commerce announced on February 24 the imposition of preliminary countervailing duties on solar cells and panels imported from India, Indonesia, and Laos.
The federal agency determined that solar industries in these three nations have benefited from government subsidies that render American-made products uncompetitive in the domestic market.
This latest trade enforcement action continues a decade-long trend of US officials targeting low-cost solar imports from Asia, which are frequently produced by Chinese-linked firms.
According to official data, the Commerce Department has calculated general subsidy rates of 125.87% for India, 104.38% for Indonesia, and 80.67% for Laos.
The impact on the market is expected to be substantial.
Last year, these three countries accounted for $4.5 billion in solar imports, representing approximately two-thirds of the total volume brought into the US in 2025.
This shift to India and the aforementioned Southeast Asian nations occurred after previous US tariffs caused imports from Malaysia, Vietnam, Thailand, and Cambodia to plummet.
The trade case was initiated by the Alliance for American Solar Manufacturing and Trade.
This coalition includes major industry players such as Arizona’s First Solar, South Korea’s Hanwha Qcells, and San Antonio-based Mission Solar (a subsidiary of Korea’s OCI Holdings).
The group argues that these duties are essential to safeguarding billions of dollars in recent investments in US-based manufacturing facilities.
Tim Brightbill, the lead counsel for the Alliance, praised the Commerce Department's decision.
"This is a vital step toward restoring fair competition," Brightbill stated, adding that domestic investments cannot thrive if "unfairly traded imports" continue to distort the US market.
However, the decision met with criticism from representatives of the affected companies.
Matthew Nicely, an attorney for the Chinese-based Solarspace, expressed disappointment, arguing that the assigned rates do not reflect the company's actual operations.
In addition to general national rates, the Commerce Department specified duties for individual entities:
- India: Mundra Solar (125.87%).
- Indonesia: PT Blue Sky Solar (143.3%) and PT REC Solar Energy (85.99%).
- Laos: SolarSpace Technology Sole Co and Vietnam Sunergy Joint Stock Company (both at 80.67%).
This announcement marks the first of two critical rulings expected this spring.
Next month, the Commerce Department will issue a separate decision regarding "anti-dumping" allegations, specifically, whether these countries have been selling solar products in the US at prices below the cost of production.
A final determination for the current countervailing investigation is slated for July 2026.
Reuters
