The U.S. has implemented a 25% tariff on all solar imports from India, effective August 1, 2025, as part of a broader trade policy shift. This move intensifies existing trade tensions between the two nations and could significantly impact India’s solar export sector.
India is a key supplier of solar panels to the U.S., ranking as the sixth-largest source of solar imports. The new tariff, combined with an additional 25% penalty on goods linked to Russian oil purchases, could raise the total tariff on Indian solar products to 50%. This escalation follows a petition by U.S. solar manufacturers alleging that Indian firms benefit from unfair subsidies, potentially leading to anti-dumping duties up to 93.5%
The Alliance for American Solar Manufacturing and Trade has identified a dumping margin of 213.96% in its petition, which, if upheld, could severely disrupt India’s $1.5 billion solar export market to the U.S.
In response, Indian solar companies are exploring alternative markets and diplomatic avenues to mitigate the impact. However, the situation remains fluid, with potential for further developments in the coming months.