Trump Hits India with 126% Tariff on Solar Products

US President Donald Trump has dealt a major blow to India. Trump has decided to impose an initial tariff of approximately 126% on solar panels coming from India.

Trump tariff: US President Donald Trump has dealt a major blow to India. The United States has decided to impose an initial tariff of up to approximately 126% on solar panels coming from India. The US Department of Commerce stated that the Indian government was unfairly subsidising its solar manufacturers, allowing them to sell goods at lower prices and harm American companies.

Similarly, proposals are also in place to impose duties ranging from 86% to 143% on solar products from Indonesia and around 81% on products from Laos.

These duties are separate from the general tariffs imposed by the Trump administration. Recently, a court struck down some of Trump’s standard tariffs, in response to which he introduced a new 10% tariff. The current solar tariffs, however, are part of a separate anti-subsidy investigation.

What happens next?

A group of U.S. solar manufacturing companies has called for this investigation to be launched. They argue that the move is necessary to protect the domestic industry. A final decision in the case is expected by July 6.

Impact on the U.S. solar industry

In the first half of 2025, 57% of the solar modules imported by the United States came from India, Indonesia, and Laos. As a result, steep tariffs could increase the cost of solar projects in the U.S., potentially leading to higher electricity prices for consumers.