US announces duties on Indian solar imports; stocks of Waaree Energies, Premier drop up to 15%

Shares of Indian solar equipment manufacturers tumbled sharply on Wednesday after the United States unveiled plans to impose countervailing duties on solar cells and panels imported from India and other Asian nations.The US commerce department said that it would apply the duties to imports from India, Indonesia and Laos to support domestic producers. It said that manufacturers in these three countries are revceiving government subsidies that puts American producers at a competitive disadvantage.As per a fact sheet published by the department, the general subsidy rate was calculated at 125.87% for imports from India, 104.38% for Indonesia and 80.67% for Laos, Reuters reported.The announcement weighed heavily on Indian solar stocks. Waaree Energies plunged up to 15% before narrowing losses to trade around 11% lower, putting the stock on track for its steepest single-day fall. Premier Energies and Vikram Solar dropped as much as 14.2% and 7.8%, respectively, before trimming declines. Government trade data showed the three countries together accounted for $4.5 billion worth of solar imports last year, roughly two-thirds of the projected 2025 total. US tariffs have previously disrupted global solar flows, with shipments from Malaysia, Vietnam, Thailand and Cambodia falling sharply after duties on those countries were finalised last year.The latest move represents the first of two anticipated rulings in a trade case filed last year by a group representing part of the US solar manufacturing industry. The commerce department is expected next month to decide whether companies from the three countries sold products in the US at prices below their cost of production.