Dalal Street shaken! Trump’s 126% solar duty triggers massive crash in Indian solar stocks

Shares of Waaree Energies Ltd., Premier Energies Ltd., and Vikram Solar Ltd. fell by as much as 15% during the trading session.

While Waaree Energies recovered some losses, it was still down 12%, Premier Energies was trading 7% lower after plunging 13% intraday, and Vikram Solar shares slipped nearly 5%, reflecting investor panic following the US move.

The US Commerce Department said the duties were necessary because India was unfairly subsidising its domestic solar manufacturing, giving exporters an advantage that undercut American producers.

According to the department, the rates are based on foreign subsidies that allow exporters from these countries to sell products at lower prices, making it difficult for US producers to compete.

Similar duties ranging from 86% to 143% were imposed on Indonesia and Laos. The move is aimed at creating a level playing field for US manufacturers.

The announcement comes shortly after India and the United States signed a trade framework that reduced tariffs on Indian goods from 50% to 18%.

Following a Supreme Court ruling that struck down earlier tariffs, US President Donald Trump introduced a baseline 10% tariff on most imports, with the option to raise it to 15%.

India has emerged as a major supplier of solar cells and modules to the US, particularly after Washington restricted imports linked to China. Indian solar exports to the US reached $792.6 million in 2024, nearly nine times the 2022 level, making America the primary destination for India’s solar module exports.

The fresh duties have also led to the postponement of a scheduled three-day India-US trade meeting, adding uncertainty to ongoing negotiations. With global tariff tensions rising, the future of Indian solar exports to the US remains unclear.