US Slaps 126% Tariff on Indian Solar Panels

Tariff comes weeks after US and India agreed on interim trade deal framework.

Published on Feb. 25, 2026

Got story updates? Submit your updates here. ›

The Trump administration has announced a 126% tariff on certain solar products imported from India, accusing the country of unfair trade practices. This move comes just weeks after the US and India agreed on a framework for an interim trade deal.

Why it matters

The new tariff could significantly impact India's solar industry, which has been rapidly expanding in recent years. It also raises concerns about the stability of the US-India trade relationship, which the two countries had been working to improve through the interim trade deal negotiations.

The details

The US government claims that India has been unfairly subsidizing its solar panel manufacturers, allowing them to sell products in the US market at artificially low prices. The 126% tariff is intended to offset what the US sees as an unfair advantage.

  • On February 25, 2026, the Trump administration announced the new 126% tariff on Indian solar panels.

The players

Donald Trump

The President of the United States who announced the new tariff on Indian solar panels.

India

The country that exports solar panels to the US, which are now subject to a 126% tariff.

Got photos? Submit your photos here. ›

What they’re saying

“We must protect American jobs and businesses from unfair trade practices.”

— Donald Trump, President of the United States

What’s next

India is expected to challenge the tariff through the World Trade Organization, arguing that it violates global trade rules.

The takeaway

The new US tariff on Indian solar panels threatens to escalate trade tensions between the two countries, potentially undermining their efforts to reach an interim trade deal and casting uncertainty over the future of the US-India trade relationship.