US tariff on Indian solar exports rises to 126 per cent after Adani firms withdrew from anti-subsidy investigation.
WASHINGTON: The US tariff on Indian solar exports has surged to 126 per cent after two Adani Group companies withdrew from an ongoing American anti-subsidy investigation.
According to reports, Mundra Solar Energy and Mundra Solar PV, both part of the Adani Group, were identified as mandatory respondents in the probe conducted by the US Department of Commerce. Their decision not to participate in the proceedings resulted in what officials described as an Adverse Facts Available penalty.
The sector wide measure was imposed on February 20, significantly raising trade tensions in the renewable energy space. In its preliminary findings, the US Department of Commerce stated that the companies withheld necessary information, failed to respond within established deadlines and impeded the investigation process by not answering the initial questionnaire.
The US tariff on Indian solar exports applies broadly following the non cooperation of the two firms. Investigators noted that the companies exported solar cells in large volumes over a short period and benefited from various Indian government schemes. These included the Advance Authorisation Programme, Duty Free Import Authorisation Scheme, Duty Drawback Programme and the Export Promotion of Capital Goods Scheme.
The report also highlighted concerns about India’s solar sector dependence on Chinese imports and investment flows. It noted that Chinese firms have increasingly invested in manufacturing facilities across countries including Cambodia, Malaysia, Thailand and Vietnam.
The US tariff on Indian solar exports could impact trade flows between the two countries and influence pricing dynamics in the global solar market, particularly as demand for renewable energy equipment continues to grow worldwide.
