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What Is Anti-Dumping Duty
What Is Anti-Dumping Duty? Why the US Imposed 123% On Indian Solar Imports
In a major setback for Indian solar photovoltaic manufacturers, the US has announced to impose a 123 per cent anti-dumping duty on solar imports, which will badly hurt their businesses.
Following the investigation, the US Department of Commerce (DoC) has concluded that solar cells imported from India are being sold in the US below fair value. Four Indian manufacturers – Mundra Solar PV, Mundra Solar Energy, Kowa Company, and Premier Energy Photovoltaic – came under the radar in the preliminary findings.
Their estimated weighted average dumping margin has been calculated at 123.07 per cent.
All other Indian manufacturers have been given a common dumping margin. Duties will be collected by the US Customs and Border Protection based on this rate, with a reduction to reflect already imposed CVDs.
After this adjustment, the effective rate comes to 107.77%.
According to the Alliance for American Solar Manufacturing and Trade, with this and the earlier US countervailing duty determinations, the total duties for solar PV imports to the US from India could reach about 234 per cent, which is quite higher than Indonesia at 178% and Laos at 103 per cent.
Anti-dumping duty is a tax that a country imposes on imported goods when it believes those goods are being sold at an unfairly low price—often lower than their cost of production or lower than prices in the exporter’s home market. This practice, called “dumping," can hurt domestic manufacturers by undercutting prices and taking away market share. To counter this, governments investigate and, if they find evidence of dumping and injury to local industry, they impose an additional duty on those imports.
The aim is not to stop trade, but to level the playing field so that local companies can compete fairly.
An industry body had first moved a complaint in July 2025, claiming that solar cells from India, Indonesia and Laos were being dumped in the US market and were also benefiting from subsidies. Acting on this, the United States Department of Commerce in February 2026 imposed preliminary countervailing duties—about 126% on imports from India, as high as 143% on Indonesia, and 80.67% on shipments from Laos.
Source: News18
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