By Admin 
Trump Tariff: Even after the US Supreme Court’s decision declaring tariffs illegal, President Donald Trump is coming out with new orders. Now he has announced to impose 126 percent tariff on solar imports from India. America believes that India is unfairly subsidizing solar manufacturing.
Tariff increased on Indonesia and Laos also
America believes that with the help of the Indian government (by providing cheap loans, tax exemption or concession on electricity), panels made in India are being sold cheaply in America. Due to this, American companies are facing difficulties in competing with them and they are incurring losses.
America wants to protect its domestic manufacturers from the flood of cheap imports. To give them a level playing field, America has also increased solar tariffs on Indonesia and Laos. Now the tariff on solar panels or cells coming from Indonesia will be 143 percent as compared to 86 percent earlier. At the same time, Laos will have to pay 81 percent tariff. Now the question arises that why did America decide to increase solar tariffs on these three countries?
Reason for decision for America
The first reason for this is that American investigation has found that the governments of India, Indonesia and Laos are unfairly giving subsidies to their solar manufacturers. Due to this, the companies here are able to sell their products in the American markets at lower prices, due to which the domestic companies of America are incurring losses.
Another big reason is that after America imposed tariffs on solar cells made in China, Chinese companies are sending their products to America through other countries so that they can avoid the restrictions imposed on them. Earlier many Chinese companies decided to shift their production to Cambodia, Vietnam, Malaysia and Thailand. When duty was imposed on these countries, production shifted again. This time India, Indonesia and Laos were selected.
In the first half of 2025, these three countries accounted for 57 percent of all US solar-module imports. In view of this surge in solar exports, American industry groups (Alliance for American Solar Manufacturing and Trade) filed a petition. His argument was that due to foreign subsidies, there is no equal competition in the market.
What will be the effect of the decision?
- Due to the imposition of solar tariffs, imported panels in America are going to be very expensive. The price of Indian solar panels will more than double in America after the 126 percent tariff hike. This may affect the prices of homes and commercial solar installations.
- Citigroup analysts say that heavy solar tariffs can completely drive Indian manufacturers out of the US markets. About 95 percent of India’s total solar exports reached the American markets. The loss of this market could lead to a major decline in the income of Indian companies.
- This step taken by America is very sensitive for India because Trump has recently signed a bilateral trade deal with the aim of reducing the economic conflict between the two countries.