Starting August 1, 2025, all goods imported from India into the United States will face a 25% tariff, according to an announcement made by President Donald Trump via his Truth Social platform.
In his statement, Trump emphasized that while India is considered a “friend,” its trade practices are “unfair,” describing its tariffs as “among the highest in the world.”
The decision could significantly impact the US solar industry, which has increasingly looked to India as a growing and strategic alternative to Chinese supply chains. Over recent years, India has developed robust solar manufacturing capabilities, particularly in solar cells and modules, positioning itself as a key potential partner for US clean energy goals.
Indian manufacturers like Waaree Energies have not only ramped up exports to the US but also established production facilities stateside. However, the newly imposed tariffs may disrupt this supply chain, raising the cost of Indian solar components and complicating plans to import intermediate products like solar cells for assembly into modules within the US.
Indian Government Responds
India’s Ministry of Commerce and Industry has acknowledged the announcement and issued a formal response, stating: “The Government has taken note of a statement by the US President on bilateral trade. The Government is studying its implications.”
The statement continued: “India and the US have been engaged in negotiations on concluding a fair, balanced, and mutually beneficial bilateral trade agreement over the last few months. We remain committed to that objective. The Government attaches the utmost importance to protecting and promoting the welfare of our farmers, entrepreneurs, and MSMEs. The Government will take all steps necessary to secure our national interest.”
Additional Trade Pressures on the Horizon
Compounding the situation, the US Department of Commerce (DOC) recently launched new anti-dumping (AD) and countervailing duty (CVD) investigations targeting solar imports from India, as well as Laos and Indonesia. Should these investigations lead to further duties, Indian solar exports could become even less viable for US buyers, drastically narrowing the number of tariff-free supply options for American solar companies.
As the global solar industry recalibrates supply chains amid evolving trade policies, this latest move introduces new uncertainty—particularly for developers and manufacturers aiming to reduce reliance on Chinese goods while keeping costs competitive.
