In a major trade development, the United States has announced a preliminary countervailing duty (CVD) of 125.87% on imports of certain Indian solar products, alleging that these goods benefit from unfair government subsidies.
The decision was issued by the US Department of Commerce on February 24, 2026. The preliminary affirmative determination covers “Crystalline Silicon Photovoltaic Cells, Whether or Not Assembled into Modules” from India, Indonesia, and the Lao People’s Democratic Republic (Laos).
The duties are separate from the 10% tariffs introduced by the Trump administration on February 24 for imports from all countries.
According to the US order, imports of solar products from India rose sharply in recent years. Shipments increased to USD 792.6 million in 2024, compared to USD 83.86 million in 2022. The surge in imports was cited in the ongoing investigation.
The Department of Commerce stated that, unless postponed, the final determination in these countervailing duty investigations is scheduled to be issued on July 6, 2026. In addition to the CVD probe, the department is also conducting concurrent anti-dumping duty investigations into solar cell imports from India, Indonesia, and Laos.
Countervailing duties are imposed to offset subsidies provided by exporting governments. These measures are designed to protect domestic industries from the impact of subsidised imports that may distort fair competition.
The preliminary findings mark a significant step in the ongoing trade scrutiny of solar imports into the US market.
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