Shares of Indian solar companies fell sharply on Wednesday after US President Donald Trump announced steep tariffs on solar imports from India, raising concerns about export prospects to one of its largest overseas markets.
By 1 p.m., stocks of major solar companies were firmly in the red, according to BSE data. Waaree Energies Ltd fell 11.23 per cent, while Premier Energies Ltd fell 6.85 per cent and Vikram Solar Ltd fell 5.50 per cent.
Losses were steeper earlier in the session. Waaree Energies stock fell as much as 15 percent during the day before paring some of the decline, putting the stock on track for its worst trading day ever. Shares of Premier Energies and Vikram Solar also fell sharply, falling to 14.2 percent and 7.8 percent, respectively, before recovering part of their losses.
Why are shares of Indian solar companies falling?
The sharp sell-off followed Washington’s move to impose an initial 125.87 percent countervailing duty on some Indian solar products, alleging that these goods are unfairly subsidized by New Delhi.
The U.S. Department of Commerce, in an order dated February 24, 2026, said it had made preliminary positive findings in its investigations related to countervailing duties into imports of crystalline silicon photovoltaics, whether shipped as stand-alone units or assembled into solar modules, from India, Indonesia, and the Lao People’s Democratic Republic (Laos).
The tariffs apply to crystalline silicon photovoltaics, a key component of solar modules, and are separate from the basic 10 percent tariffs the Trump administration announced earlier on imports from all countries.
This means that Indian exporters now face a much higher tariff burden specifically targeting solar goods, in addition to broader trade measures.
Why does this matter for Indian solar companies?
The United States is becoming a fast-growing market for Indian solar manufacturers. According to US demand, solar imports from India rose sharply to $792.6 million in 2024, compared to $83.86 million in 2022.
This increase in exports has enabled companies such as Warri and Premier Energies to benefit from strong US demand. However, the new tariffs threaten to make Indian solar products much more expensive in the US market.
A shift in the US trade stance
The move comes just weeks after New Delhi and Washington agreed on a temporary framework for an India-US trade agreement aimed at reducing customs duties on Indian exports to 18 percent from 50 percent earlier.
However, the trade landscape changed after the US Supreme Court struck down Trump’s previous tariff regime as unconstitutional. The administration then imposed new basic duties of 10 percent on most imports, with warnings that they could be raised to 15 percent.
The latest solar tariffs suggest that an “America First” approach continues to shape US trade policy, even as broader negotiations continue.
Outside India, the US Department of Commerce has also set initial countervailing duty rates ranging from 86 percent to 143 percent for Indonesia and 81 percent for Laos.
