The US Commerce Department has imposed a preliminary countervailing duty of 125.9 per cent on imports of Indian solar cells and modules. This requires importers to post cash deposits during the ongoing investigation.
Deep Dive | Washington's Solar Strike Signals Tougher Trade Posture On India
US imposes 125.9% duty on Indian solar exports amid trade tensions.
Source : ABPLIVE AI
Fresh US duties on Indian solar exports and a court ruling on tariffs add trade uncertainty amid falling US-bound shipments and potential new penalties.
US Tariffs: The tariff war between India and the US has just reached another flashpoint with the US Commerce Department imposing a preliminary countervailing duty of a whopping 125.9 per cent on imports of Indian solar cells and modules. This now requires importers to post cash deposits while the investigation continues, with a final decision expected by July 2026. The penalty follows the US International Trade Commission (ITC) finding early evidence that imports were harming domestic producers
Frequently Asked Questions
What is the new countervailing duty imposed on Indian solar cells and modules by the US?
Why has the US imposed these new duties on Indian solar exports?
The penalty follows the US International Trade Commission (ITC) finding early evidence that these imports were harming domestic producers. Export-linked schemes are under scrutiny as potential subsidies.
How will this new duty impact Indian solar panel exports to the US?
A USD 100 panel could land in the US at about USD 226, making many contracts commercially unviable. India exported USD 1.2 billion in solar panels to the US in CY2025, down 18% from CY2024.
What is the US Supreme Court's ruling regarding President Trump's tariffs?
The US Supreme Court struck down President Trump's reciprocal tariffs as exceeding his authority, specifically under the International Emergency Economic Powers Act (IEEPA).
What is the new global surcharge implemented by the US Administration?
The US Administration implemented a replacement global surcharge under Section 122 of the Trade Act of 1974. This raises tariffs on all imports from trade partners from 10 per cent to 15 per cent.
