Preliminary Determination Targets Crystalline Silicon Photovoltaic Cells from India
New Delhi, February 25: The United States has announced preliminary countervailing duties of 125.87% on imports of certain Indian solar products, alleging that these products benefit from unfair government subsidies.The move specifically targets crystalline silicon photovoltaic cells, whether or not assembled into modules, commonly referred to as solar cells. The decision forms part of an ongoing countervailing duty investigation into imports from India, Indonesia, and the Lao People's Democratic Republic.
According to an official order issued by the US Department of Commerce, preliminary affirmative determinations were announced on February 24, 2026, covering solar cell imports from the three countries.
Duties Separate from Universal 10% Tariff
The newly announced countervailing duties are distinct from the 10% tariffs imposed by the Trump administration on all countries from February 24.While the universal tariff applies broadly across imports, the countervailing duties are product-specific and are aimed at offsetting alleged subsidies that benefit exporters in the solar manufacturing sector.
Sharp Rise in Indian Solar Exports to the US
The investigation comes amid a significant increase in Indian solar exports to the United States.Solar imports from India into the US surged to USD 792.6 million in 2024, up sharply from USD 83.86 million in 2022, according to the order.
The steep rise in shipments appears to have drawn scrutiny under trade remedy laws designed to address subsidized imports.
Final Decision Expected in July 2026
Unless postponed, the final determination in the countervailing duty investigations is currently scheduled for July 6, 2026.In parallel, the Department of Commerce is also conducting concurrent anti-dumping duty investigations into solar cells imported from India, Indonesia, and Laos.
What Countervailing Duties Mean
Countervailing duties are trade measures imposed to counteract government subsidies provided to foreign producers. These duties aim to protect domestic industries from injury caused by the increased import of subsidized products.With the preliminary determination now in place, stakeholders in the global solar supply chain will closely monitor the final outcome of the investigation later this year.
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