Shares of Indian solar equipment makers fell up to 15% on Wednesday after the United States announced duty on solar imports from India and a couple of other Asian countries.
- Waaree Energies Ltd. fell as much as 15% but recouped some of the losses to trade 11% lower. The stock is on course for its worst trading session ever.
- Premier Energies Ltd. and Vikram Solar Ltd. slid as much as 14.2% and 7.8%, respectively, before recovering some of their losses.
US President Donald Trump has imposed preliminary duty of 126% on solar imports from India, a move that threatens to derail the India-US trade deal.
On Tuesday, the US Commerce Department said it will impose countervailing duties on solar cells and panels imported from companies in India, Indonesia, and Laos, aiming to offset subsidies that support manufacturers in those countries. New Delhi — according to Washington DC — has unfairly subsidised its domestic manufacturing, allowing exporters to undercut American-made products.
US solar tariffs ‘a major setback’
A lack of viable export markets will force Indian solar PV module makers to push their stocks into the domestic market, resulting in an oversupply.
As of January 2026, India had an installed solar-module manufacturing capacity of more than 160 GW, as against domestic demand of 40-45 GW.
India’s solar exports to the US reached $792.6 million in 2024, a nine-fold increase from 2022 levels.
“The preliminary US countervailing duties are a major setback for Indian solar manufacturers that relied heavily on exports to the US market,” Rajan Kalsotra, Senior Consultant at EUPD Research, told Reuters.
“With the US accounting for the overwhelming share of exports, producers now face a dual dilemma of excess capacity and restricted market access.”
More US solar tariff action likely
The ruling is only the first step in a broader trade action initiated last year by a group of American solar manufacturers.
A separate decision, due next month, will determine whether exporters in the three countries also slashed prices below production cost—a finding that could lead to another round of anti‑dumping penalties.
