America imposed 126% duty on Indian solar panels: Said- China is sending cheap products through India; This will cause loss to American manufacturers

America has imposed an initial duty of 126% on solar panels and cells coming from India. The US Commerce Department says that India is unfairly subsidizing its manufacturers, causing losses to American domestic companies. Apart from India, levy ranging from 81% to 143% has also been imposed on Laos and Indonesia. This decision has been taken on the basis of preliminary investigation. The final decision on the investigation will come on July 6. That means, if the subsidy issue is proved, then this tax will become permanent. Solar panels will become expensive, now it will be difficult to survive in the American market. Due to this decision, it may be difficult for Indian solar exporters to survive in the American market. Imposition of 126% duty means that the price of these panels will more than double in America. In such a situation, American buyers will prefer to buy panels from local companies or other countries instead of Indian goods because Indian products will now be out of competition. The highest tax on Indonesia is 143%. This duty is different from Trump’s 10% global tariff. This tax is different from the 10% global tariff which Trump had recently announced. The US Supreme Court last week canceled Trump’s old tariff plan, after which he imposed fresh tariffs. Now this new decision has increased the concern of the industry. These three countries have 57% share in the American market. Allegations of sending Chinese products through India-Indonesia. Experts said – the path is closed for Indian companies. Analyst Vikram Bagri of Citigroup Inc. says that after the imposition of such high tariffs, the American market will now be almost closed for Indian solar manufacturers. American companies’ allegation – damage to the market due to cheap foreign goods. American solar group ‘Alliance for American Solar Manufacturing and Trade’ had appealed to the Commerce Department to investigate the subsidy. The group said that this investigation is necessary to save American manufacturing. He has now welcomed this decision of tariff. Tim Brightbill, chief counsel for the Alliance, said today’s decision is a major step toward restoring fair competition in the U.S. solar market. He also said that American manufacturers are investing billions of dollars to increase the country’s capacity and create good jobs. This investment will never be successful if improperly imported goods are allowed to distort the market. Anti-dumping duty on solar cells is also being investigated. The US Commerce Department is also investigating anti-dumping duty on solar cells. It is alleged that companies from India, Indonesia and Laos are selling their goods in America at prices lower than cost. It is doing this to capture the American market. American manufacturers had filed a petition regarding this in July. Allegations were made that Chinese companies were sending cheap goods to America through countries like India. Following these complaints, the International Trade Commission started investigating the anti-dumping and countervailing duty claims. Knowledge Box: What is Anti-Dumping and Countervailing Duty?



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