Shares of Indian solar companies tumbled sharply on Wednesday after US President Donald Trump announced steep tariffs on solar imports from India, triggering concerns over export prospects to one of their biggest overseas markets.
By 1 pm, shares of major solar players were firmly in the red, according to BSE data. Waaree Energies Ltd was down 11.23 per cent, while Premier Energies Ltd slipped 6.85 per cent and Vikram Solar Ltd declined 5.50 per cent.
The losses were steeper earlier in the session. Waaree Energies had plunged as much as 15 per cent intraday before trimming some of the decline, putting the stock on course for its worst-ever trading day. Premier Energies and Vikram Solar also fell sharply, dropping up to 14.2 per cent and 7.8 per cent, respectively, before recovering part of their losses.
Why are Indian solar companies' shares falling
The sharp sell-off followed Washington’s move to impose a preliminary countervailing duty of 125.87 per cent on certain Indian solar products, alleging that these goods are unfairly subsidised by New Delhi.
{{/usCountry}}The sharp sell-off followed Washington’s move to impose a preliminary countervailing duty of 125.87 per cent on certain Indian solar products, alleging that these goods are unfairly subsidised by New Delhi.
{{/usCountry}}The US Department of Commerce, in an order dated February 24, 2026, said it had reached preliminary affirmative findings in its countervailing duty investigations into imports of crystalline silicon photovoltaic cells, whether shipped as standalone units or assembled into solar modules, from India, Indonesia and the Lao People’s Democratic Republic (Laos).
The duties apply to crystalline silicon photovoltaic cells, a key component of solar modules, and are separate from the 10 per cent baseline tariffs announced earlier by the Trump administration on imports from all countries.
This means Indian exporters now face a significantly higher tariff burden specifically targeting solar goods, on top of broader trade measures.
Why this matters for Indian solar firms
The United States has become a fast-growing market for Indian solar manufacturers. According to the US order, solar imports from India rose sharply to $792.6 million in 2024, up from $83.86 million in 2022.
That surge in exports had positioned companies such as Waaree, Premier Energies to benefit from strong US demand. The new duties, however, threaten to make Indian solar products far more expensive in the American market.
A shift in US trade stance
The move comes just weeks after New Delhi and Washington agreed on an interim framework for an India-US trade deal aimed at reducing tariffs on India’s exports to 18 per cent from 50 per cent earlier.
However, the trade landscape shifted after the US Supreme Court struck down Trump’s earlier tariff regime as unconstitutional. The administration then introduced a new 10 per centbaseline duty on most imports, with warnings that it could be raised to 15 per cent.
The latest solar-specific duties signal that the “America First” approach continues to shape US trade policy, even as broader negotiations remain underway.
Beyond India, the US department of commerce has also set initial countervailing duty rates ranging from 86 per cent to 143 per cent for Indonesia and 81 Per cent for Laos.