The U.S. has once again escalated trade barriers on imported photovoltaic (PV) products. On February 24, 2026, the U.S. Department of Commerce announced a preliminary ruling, determining that crystalline silicon solar cells and modules from India, Indonesia, and Laos are benefiting from unfair subsidies, and therefore, anti-subsidy duties will be imposed on these products. This marks another significant expansion of U.S. solar trade relief measures, following the previous imposition of high "anti-dumping" and "anti-subsidy" tariffs on four Southeast Asian countries.
Latest Ruling: Tariff Rates Range from 80% to 143%
According to the preliminary ruling issued by the U.S. Department of Commerce, solar products from these three countries will be subject to varying anti-subsidy tariffs:
India: A uniform anti-subsidy tariff of 125.87% applies to all Indian exporters.
Indonesia: Tariffs range from 85.99% to 143.3%. PT Blue Sky Solar Indonesia faces the highest tariff of 143.3%, PT REC Solar Energy Indonesia faces a tariff of 85.99%, while other exporters will be subject to a uniform tariff rate of 104.38%.
Laos: A uniform tariff rate of 80.67% applies to all exporters.
This preliminary ruling is subject to final publication in the Federal Register. Afterward, U.S. Customs will immediately require importers to pay the corresponding cash deposits.
This action is not an isolated incident but part of the ongoing tightening of the global solar supply chain by the U.S. As early as 2025, the U.S. Department of Commerce had made a final ruling on crystalline silicon solar cells and modules from Cambodia, Malaysia, Thailand, and Vietnam, imposing high anti-dumping and anti-subsidy tariffs (i.e., "double anti" tariffs). Some companies were hit with staggering cumulative tariff rates, with Cambodia facing a maximum rate of 3521.14% for certain enterprises.
Since then, the American Solar Manufacturing and Trade Alliance, representing U.S. small manufacturers, has petitioned the government, accusing Chinese-affiliated solar companies of shifting production capacity from the aforementioned four countries to India, Indonesia, and Laos to bypass the original high tariffs, creating new "detour" export routes. The ongoing investigation into India, Indonesia, and Laos is a response to these accusations.
Trade Flow Shifts Behind the Data
The U.S. Department of Commerce's investigation reveals a dramatic surge in solar exports from these three countries to the U.S. in recent years:
l In 2025, India, Indonesia, and Laos collectively exported approximately $4.5 billion worth of solar products to the U.S., accounting for about two-thirds of the total solar imports into the U.S. that year.
l Laos' exports saw the most remarkable growth, jumping from nearly zero in 2022 to $336 million in 2024.
l India's share of the U.S. solar market also rose from about 3% in 2024 to 11%.
The U.S. Department of Commerce determined that this growth in exports from the three countries was fueled by unfair government subsidies, including tax incentives, land support, and policy-driven financial assistance, which allowed products to flood the U.S. market at low prices, harming the domestic industry.
It is important to note that this ruling only addresses the anti-subsidy (CVD) portion of the investigation. The case also includes anti-dumping (AD) and anti-subsidy investigations. The preliminary decision on anti-dumping has been delayed due to factors like the U.S. government shutdown and is expected to be released around April 2026. The Department of Commerce is expected to make its final decision later this year.
Once the final ruling is implemented, combined with any potential anti-dumping tariffs, solar products from these countries will face even higher overall tax burdens when exported to the U.S.
From direct exports from China to the detour routes through Southeast Asia, and now to a full blockade on several Southeast Asian countries, the U.S. is closing the loop on trade barriers against the Chinese solar industry. For Chinese solar companies that are deeply integrated into the global supply chain, this means that their space for detour exports has been significantly reduced, and their global capacity planning and market strategies will need a new round of adjustments.
