In a fresh escalation of trade tensions, US President Donald Trump has announced steep preliminary tariffs on solar imports from India, Indonesia and Laos. The decision comes shortly after the US Supreme Court struck down his earlier attempt to impose wide-ranging “reciprocal tariffs.”
Heavy Duties on Solar Imports
On February 24, 2026, the US Department of Commerce announced countervailing duties on crystalline silicon solar cells and modules from the three countries. The department said investigations found that manufacturers were benefiting from government subsidies, giving them an unfair price advantage in the American market.
The proposed tariff rates are:
India: 126%
Indonesia: Between 86% and 143%
Laos: 81%
These are preliminary findings. A final decision is expected by July 6, 2026. Authorities are also conducting a parallel anti-dumping probe.
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After Supreme Court Blow
Just days earlier, on February 20, 2026, the US Supreme Court ruled 6-3 against the administration’s “reciprocal tariffs.” The court said the President had gone beyond his legal authority by using emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose broad trade duties.
Following the verdict, Trump quickly shifted strategy:
He invoked Section 122 of the Trade Act of 1974 to introduce a 10% global baseline tariff.
The rate was later raised to 15%.
These global tariffs can remain in place for up to 150 days unless Congress approves an extension.
Unlike the earlier emergency tariffs, the new solar duties are linked to specific trade investigations, which operate under a different legal process.
Also Read: Daily Morning Brief | 25 February 2026
Impact on India and the Solar Industry
The decision has complicated ongoing trade discussions between India and the United States. Earlier efforts were focused on easing tariff barriers under an interim trade arrangement.
Financial markets reacted sharply. Shares of Indian solar companies declined soon after the announcement, reflecting investor concerns about export prospects.
Industry observers note that India, Indonesia and Laos together supplied a significant share of US solar module imports in recent years. Restricting these imports could push up costs for American solar developers and affect clean energy projects.
As investigations continue and final rulings are awaited, global trade relations in the renewable energy sector remain uncertain.
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