Indian Solar Exports Face 126% US Duty; Waaree in Focus

US Imposes Steep Tariffs on Indian Solar Panels

The United States has imposed preliminary duties of 126% on solar imports from India, a move that places significant pressure on Indian solar manufacturers. The decision, announced by the Trump administration on February 25, 2026, is set to impact major players in the sector, including Waaree Energies Ltd. and Premier Energies Ltd. The US Commerce Department stated that the rates were determined based on foreign subsidies that allegedly allowed exporters to undercut domestic American solar producers. This development introduces substantial uncertainty for Indian companies that have been expanding their footprint in the American market.

Scope of the New Duties

The new tariffs are not limited to India. The US has also set initial duties ranging from 86% to 143% for solar imports from Indonesia and 81% for those from Laos. These duties are distinct from the reciprocal tariffs previously imposed by the Trump administration, which were recently struck down by the US Supreme Court. In a separate but related action, a 10% universal tariff declaration was issued, which was subsequently increased to 15% over the weekend. The initial 10% tariff became effective immediately. The combination of these measures signals a more aggressive trade stance aimed at protecting domestic manufacturing.

A Surge in Exports Preceded the Tariffs

The decision follows a dramatic increase in solar panel shipments from India to the United States. According to the US Commerce Department, solar imports from India were valued at $192.6 million in 2024. This figure represents a more than nine-fold increase compared to the levels recorded in 2022. This rapid growth highlighted the increasing competitiveness of Indian manufacturers but also drew scrutiny from US trade authorities, culminating in the recent tariff announcement.

Market Access and Analyst Commentary

Financial analysts have been quick to assess the potential damage. A research note from Citi analyst Vikram Bagri suggested that the steep duty rates would likely render the US market largely inaccessible for Indian solar panel manufacturers. The high tariffs effectively erase the cost advantages that Indian exporters previously held, making it difficult for them to compete with domestic producers or suppliers from countries not subject to such duties. This could force a significant strategic rethink for companies heavily reliant on US sales.

Waaree Energies Faces Dual Challenges

Waaree Energies, India's largest solar panel maker, is particularly exposed to this new trade barrier. The US has been a key market for the company, which has an established manufacturing presence there and has been actively expanding its investments. During its December quarter earnings call, management emphasized the strategic importance of the American market. As of the third quarter, the company reported a substantial order book of Rs 60,000 crore, with overseas markets contributing 32.6% of its revenue in the December quarter. The US market alone accounts for nearly 60% of its total orders.

Compounding its problems, Waaree Energies is also the subject of a separate investigation by the US Customs and Border Protection (CBP). The probe, initiated after a complaint from the American Alliance for Solar Manufacturing Trade Committee (AASMTC), alleges that the company misrepresented the country of origin of its products. The claim is that Waaree imported solar cells from China and mislabeled them as 'Made in India' to circumvent existing anti-dumping and countervailing duties on Chinese goods. The CBP has cited 'reasonable suspicion' of tax evasion and a final ruling is expected in April 2026.

Strategic Responses and Industry Impact

In response to the tariff threat, Waaree's CEO, Amit Paithankar, stated that the company is reconfiguring its supply chain. The strategy involves sourcing solar cells from nations with low tariffs on their exports to the US, leveraging a 2012 customs ruling that defines a panel's origin by its cells. The company has affirmed its cooperation with the CBP investigation and continues its US expansion, including doubling capacity at its Houston plant and acquiring assets from Meyer Burger.

Other Indian manufacturers are also affected, though to varying degrees. Premier Energies has limited exposure to the US market, which may insulate it from the immediate impact. However, for companies like Vikram Solar, where exports constitute about 20% of the order book, the new duties present a significant challenge.

Key Data at a Glance

Conclusion

The 126% preliminary duty creates a formidable barrier for Indian solar exporters aiming to serve the US market. For Waaree Energies, the situation is further complicated by the ongoing CBP investigation into its supply chain practices. While the company is attempting to adapt its strategy, the combined effect of these trade actions will likely reshape the competitive landscape for Indian solar manufacturers. The industry will be closely watching for the final duty determinations and the outcome of the Waaree investigation in April 2026.