US Imposes 123% Anti-Dumping Duty on Indian Solar Imports

New Delhi: The United States has imposed a preliminary anti-dumping duty of 123.04% on Indian solar cells and modules, pushing the combined tariff burden on these exports beyond 200%.

According to a report by Economic Times, the move comes on top of existing countervailing duties of over 125%. An industry official noted that this resulting tariff stack effectively blocks Indian solar modules from the US market.

In a notice issued on Thursday, April 23, the US Department of Commerce said that it found "critical circumstances" regarding imports from companies including Mundra Solar Energy, Mundra Solar PV, Kowa, and Premier Energies. The department noted that the suspension of liquidation will apply to shipments entered for consumption up to 90 days prior to the publication of the order.

Furthermore, the US department applied an "adverse inference" against four companies, alleging they failed to submit necessary information to calculate the duty margin and did not cooperate with requests for data.

Industry response

The domestic solar industry stated the preliminary duties will have a limited immediate impact, as exporters have shifted their focus to alternative markets such as Europe and West Asia over the past few years. However, industry bodies strongly contested the US decision.

Subrahmanyam Pulipaka, Chief Executive Officer of the National Solar Energy Federation of India (NSEFI), told Economic Times that the investigation's findings are "fundamentally flawed and without any logical basis." Pulipaka added that the NSEFI is drafting a formal representation to challenge the move.

Similarly, Amit Manohar, Secretary General of the Indian Solar Manufacturers Association (ISMA), stated that the industry will contest the preliminary ruling through the final determination process, adding that they remain hopeful of a "favourable outcome."

The preliminary duties coincide with ongoing negotiations between the US and India for a bilateral trade agreement. The two nations concluded three days of talks in Washington on Wednesday, marking their first in-person discussions since October.

On the stock market, shares of solar manufacturers saw minor fluctuations on Friday following the news with Waaree Energies closing 2.7% lower at Rs 3,320 on the BSE while Vikram Solar ending down 2.3% at Rs 222.4 and Premier Energies recovering from early losses to close 1% higher at Rs 1,011.4.

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