US Slaps 126% Tariff on Indian Solar Imports; Waaree Energies, Premier Energies Shares Tumble

Under the Trump administration, the US Department of Commerce imposed preliminary duties of about 126% on solar cells and modules imported from India, triggering a sharp fall in Indian renewable energy shares. The decision was announced by the US Department of Commerce, which said Indian manufacturers benefited from subsidies that created unfair competition for American solar producers.

The preliminary countervailing duty rate for Indian companies stands at around 125.87%. These duties take effect immediately, meaning importers must deposit the tariff amount when bringing affected products into the US. A final ruling is expected in July 2026. Separate anti-dumping investigations are also ongoing.

The action follows a complaint filed in 2025 by the Alliance for American Solar Manufacturing and Trade, a coalition representing US solar manufacturers. The group alleged that imports from India and some Southeast Asian countries were unfairly subsidised and priced below market value.

Why the US Imposed Duties on Indian Solar Exports

The US government launched an investigation after domestic manufacturers claimed that subsidised imports were hurting local production and investment. Officials examined Indian government support schemes and export data before announcing the preliminary findings on 25 February 2026.

India has become a key exporter of solar modules to the US in recent years. According to US trade data, solar equipment imports from India were valued at roughly $792.6 million in 2024, a sharp increase compared with 2022 levels. India, along with Indonesia and Laos, accounted for a significant share of total US solar module imports during 2025.

The decision comes at a sensitive time for India-US trade relations. While both countries have been discussing broader economic cooperation, solar equipment was not covered under recent tariff relief discussions.

Waaree Energies, Premier Energies Shares Fall After Tariff News

Indian solar stocks reacted immediately to the announcement. Shares of Waaree Energies and Premier Energies declined sharply in early trade on 25 February. At one point, some stocks in the sector were down as much as 14% before trimming losses later in the session.

The broader renewable energy segment also came under pressure as investors assessed the potential impact on export revenues. Companies with significant exposure to the US market may face margin pressure if the duties are confirmed at the same level in July.

Market analysts say the steep 126% tariff could make Indian solar exports to the US commercially unviable unless companies shift production to American facilities or diversify into other global markets.

What Happens Next in the US-India Solar Trade Dispute

The duties announced are preliminary. The US Department of Commerce will issue a final determination later this year, and the US International Trade Commission will also assess whether American manufacturers have suffered material injury.

If the final ruling upholds the 126% tariff, Indian solar exporters could see a significant drop in shipments to the US. Some companies may increase focus on India’s growing domestic solar market, while others may explore new export destinations.

The development highlights rising trade tensions in the global clean energy sector, even as countries push for faster renewable adoption. For now, investors and industry players will closely watch the July decision, which will determine whether this trade shock becomes a long-term challenge for India’s solar industry.