US Imposes New Solar Tariffs on India, Indonesia, Laos

On February 24, 2026, the U.S. Department of Commerce announced preliminary affirmative countervailing duty (CVD) determinations on crystalline silicon photovoltaic (PV) cells from India, Indonesia and Laos, whether or not assembled into modules (solar cells and panels). The ruling means new tariffs will be imposed on imports from the three countries, marking the latest escalation in U.S. solar trade enforcement.

India Faces Highest Subsidy Tariff Rate

According to the preliminary decision, India is subject to the highest countervailing duty rate at 125.87%, applied uniformly to all Indian exporters.

Indonesia faces rates ranging from 85.99% to 143.3%. PT Blue Sky Solar Indonesia is assigned a rate of 143.3%, while PT REC Solar Energy Indonesia receives 85.99%. All other Indonesian exporters are subject to a unified rate of 104.38%.

Laotian exporters are assigned a uniform rate of 80.67%.

These are preliminary rates. Final collection will take effect after publication in the Federal Register, at which point U.S. Customs will require importers to post cash deposits.

U.S. Cites Unfair Government Subsidies

The Commerce Department stated that the governments of the three countries provided unfair subsidies — including tax incentives, land concessions and financial support — enabling low-priced solar products to enter the U.S. market and undermining domestic manufacturers' competitiveness.

U.S. statistics show that in 2025, the three countries exported approximately $4.5 billion worth of solar products to the United States, accounting for roughly two-thirds of total U.S. solar imports.

Imports from India, Indonesia and Laos surged in 2024. Notably, Laos' exports jumped from zero in 2022 to $336 million in 2024. India's share of U.S. solar imports also climbed sharply, from around 3% in 2024 to 11%.

Trade Case Filed by U.S. Solar Manufacturers Alliance

The trade petition was filed by the American Solar Manufacturers Trade Alliance, representing certain small U.S. solar manufacturing companies.

In a petition submitted in July 2025, the alliance alleged that Chinese-affiliated solar producers had shifted capacity from Cambodia, Malaysia, Thailand and Vietnam — countries already subject to high tariffs — to Indonesia and Laos to circumvent existing trade barriers. The group also accused Indian domestic producers of dumping low-priced products into the U.S. market.

Previously, the alliance successfully secured substantial tariffs on crystalline silicon photovoltaic cells and modules imported from Malaysia, Cambodia, Vietnam and Thailand.

Those measures include both anti-dumping (AD) and countervailing (CVD) duties. Final rates were announced on April 21, 2025, and formally took effect on June 9, 2025.

Anti-dumping duties ranged from 0% to 172.68%, while countervailing duty rates varied more widely, from 14.64% to 3403.96%. When combined, some companies faced extraordinarily high total tariff rates. Cambodian firms, in particular, were subject to maximum combined rates reaching 3,521.14%.

Anti-Dumping Decision Still Pending

The broader trade case covers both dumping and subsidy investigations. The latest announcement concerns only the countervailing duty portion. The preliminary anti-dumping determination has been delayed due to government shutdown-related disruptions and is expected to be released around April 2026. The Commerce Department is scheduled to issue final determinations later this year.

The new measures further tighten U.S. trade restrictions on global solar supply chains. After earlier rounds of tariffs — including anti-dumping and countervailing duties as well as Section 201 and Section 301 tariffs — Chinese-made solar products already face cumulative duties exceeding 109%, resulting in minimal direct exports from China to the United States. Following earlier trade actions in 2012 and 2015, many Chinese companies redirected exports through Southeast Asia.

With the imposition of high tariffs on multiple Southeast Asian countries, that export channel is now largely constrained, signaling another major shift in the global photovoltaic trade landscape.