Solar Industry to Challenge US Trade Commission's Dumping and Subsidy Allegations

US-India Solar Trade Dispute Update

Indian solar manufacturers are directly engaging with the US International Trade Commission (ITC) to submit data and findings in response to allegations of dumping solar cells in the American market and harming domestic producers.

The ITC is expected to announce its final decision on tariffs in June 2026. Indian manufacturers plan to argue that their exports are competitively priced and not dumped, and that the surge in shipments reflects supply chain realignments and demand dynamics rather than unfair trade practices.

Adani group entities, including Mundra Solar Energy Ltd and Mundra Solar PV Ltd, have been cited by the US Commerce Department for "non-cooperation by mandatory respondents." The department applied the "adverse facts available" (AFA) standard, determining that the companies withheld requested information and significantly impeded the proceeding.

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The Commerce Department has also preliminarily determined "critical circumstances" for Mundra Solar, allowing authorities to impose duties retroactively if imports surged ahead of the probe. The department concluded that there was a reasonable basis to believe that subsidies received by Mundra Solar are inconsistent with the WTO's Subsidies and Countervailing Measures (SCM) Agreement.

The preliminary countervailing duty (CVD) imposed on Mundra Solar and other players is 125.87 percent. The case was initiated in July 2025 after a countervailing duty petition was filed by the Alliance for American Solar Manufacturing and Trade.

Key Developments:

• Indian solar module and cell exports rose 26.1 percent quarter-on-quarter to $267.6 million in Q1 2025, with the US accounting for 99.5 percent of total exports.
• Mundra Solar's export revenue accounted for 61 percent of its total operating revenue of Rs 6,352.6 crore for FY25 as of March 2025.
• The preliminary findings by the Commerce Department are expected to have a significant impact on Indian exporters.

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