Trump imposes 126% duty on Indian solar imports: What it means for US energy, will solar panels get costly and more

The Trump administration is ramping up its protectionist trade agenda, this time setting its sights on the renewable energy sector. The US Commerce Department has moved to impose preliminary duties as high as 126 per cent on solar imports from India, alongside significant levies on Indonesia and Laos, according to a Bloomberg report. 

These measures follow federal determinations that foreign subsidies have allowed exporters to unfairly undercut American-made products. As the US seeks to shield domestic manufacturers from a flood of cheap imports, the move signals a tightening grip on the global solar supply chain and a potential shift in energy costs for American consumers.

The new duties at a glance

The US Commerce Department has identified what it calls "unfairly subsidized" manufacturing practices in three key nations. To level the playing field for American producers, they have proposed the following initial levies:

• India: 126 per cent
• Indonesia: 86 per cent-143 per cent
• Laos: 81 per cent

Why these three countries? 

It comes down to a geopolitical game of musical chairs. After the US imposed tariffs on Chinese-made solar cells, many Chinese firms moved production to Cambodia, Vietnam, Malaysia, and Thailand.

When those nations were hit with duties, production shifted again—this time to India, Indonesia, and Laos. These three countries accounted for 57% of all US solar-module imports in the first half of 2025.

What will change? 

While the Alliance for American Solar Manufacturing and Trade argues these duties are essential to protect billions in domestic investment and "restore fair competition," the move creates a double-edged sword for the industry:

• Higher costs: Imported panels are about to get significantly more expensive, which could trickle down to residential and commercial solar installation prices.
• Market access: Analysts at Citigroup suggest these high levies could effectively lock Indian manufacturers out of the US market entirely.
• Trade tensions: The move is particularly sensitive regarding India, as President Trump recently signed a bilateral trade deal intended to reduce economic friction between the two nations.

What’s next?

This isn't over yet. The Commerce Department is currently running a concurrent "anti-dumping" probe to see if these countries are selling panels below cost. We can expect a final determination by July 6, which will decide if these massive duties become permanent.