Trade wars heated up Wednesday when President Donald Trump slapped a 126% tariff on solar products from India, prompting a steep decline in related Indian stocks. The penalty targets what the US calls excessive subsidies propping up Indian exports.
Waaree Energies shares initially fell 15%, stabilizing at a 10.83% drop to 2,697 rupees. Premier Energies buckled under heavier selling, down 14% intraday and 6.19% at 728.95 rupees by close. Vikram Solar declined 7.76% for the day, trading 5.67% off at 174 rupees.
Similar hikes hit Indonesia (143%) and Laos (81%), which with India claimed 57% of US solar imports through mid-2025. India’s 2024 exports to the US reached $792.6 million—up ninefold from 2022—prompting outcry from domestic producers.
Prompted by the US Solar Group’s advocacy, the tariffs seek to level the playing field for American factories. For Indian firms, it’s a pivotal challenge: the US market’s growth fueled recent expansions, but now barriers loom large.
Analysts foresee companies doubling down on US-based production or new export destinations to mitigate damage. The episode highlights escalating US efforts to onshore solar manufacturing amid the global clean energy boom. With stocks reeling, the coming weeks will test resilience in this vital sector.