US Imposes Preliminary Countervailing Duties on Solar Imports from India, Indonesia and Laos

Commerce Department Cites Subsidies Behind Solar Imports​

The United States has announced preliminary countervailing duties on solar cells and panels imported from India, Indonesia and Laos, escalating its efforts to counter what it describes as unfair government subsidies supporting Asian solar manufacturers.

The decision, unveiled on Tuesday by the US Commerce Department, follows a trade case filed last year by a coalition representing part of the domestic solar manufacturing sector. US trade officials concluded that companies operating in the three countries benefited from government backing that made American solar products less competitive in the domestic market.

Subsidy Rates Cross 100 Percent for India and Indonesia​

According to a Commerce Department fact sheet, the agency calculated the following general subsidy rates:

• India: 125.87 percent
• Indonesia: 104.38 percent
• Laos: 80.67 percent

In addition to the general rates, the department assigned company-specific duties:

• Mundra Solar, India: 125.87 percent
• PT Blue Sky Solar, Indonesia: 143.3 percent
• PT REC Solar Energy, Indonesia: 85.99 percent
• Solarspace Technology Sole Co, Laos: 80.67 percent
• Vietnam Sunergy Joint Stock Company, Laos: 80.67 percent

These preliminary findings significantly raise the cost of solar imports from the three nations if upheld in the final determination.

$4.5 Billion in Imports Under Scrutiny​

Government trade data shows that India, Indonesia and Laos together accounted for approximately $4.5 billion in solar imports last year, representing about two-thirds of total US solar imports in 2025.

US tariffs have previously reshaped global solar trade flows. Imports from Malaysia, Vietnam, Thailand and Cambodia declined sharply after a separate trade case last year resulted in steep duties on shipments from those countries, which had previously dominated the US market.

Domestic Manufacturers Back Action​

The trade case was brought by the Alliance for American Solar Manufacturing and Trade, a group that includes:

• Hanwha Qcells
• First Solar
• Mission Solar, owned by OCI Holdings

The group argues that billions of dollars are being invested in US solar manufacturing facilities and that subsidised imports threaten those investments.

Tim Brightbill, lead attorney for the alliance, described the Commerce Department’s move as a step toward restoring fair competition, stating that domestic manufacturing expansion cannot succeed if unfairly traded imports continue to distort the market.

Companies Respond to Preliminary Findings​

Matthew Nicely, attorney for Solarspace, a company based in China, said the firm was disappointed with the assigned rate. He stated that the duty does not reflect the company’s actual experience or a realistic comparison standard.

Other companies named in the decision were not immediately available for comment through their US legal representatives.

Next Steps in the Trade Case​

The countervailing duty announcement is the first of two expected decisions in this case. The Commerce Department is scheduled to issue a separate ruling next month on whether companies from India, Indonesia and Laos sold solar products in the US at prices below their cost of production.

A final determination in the countervailing investigation is expected in July.

The outcome of these proceedings could further reshape the global solar supply chain and influence pricing dynamics in the US renewable energy market.