50% to 18%! US and India Solar Tariff Drops!

According to foreign media reports, on February 2, US President Trump announced on social media that he had reached a new US-India trade agreement with India.

According to the agreement, the United States will sharply reduce tariffs on Indian imports to the United States (including long-term exports of solar cells and components to the United States) from the previous 50% to 18% . It is also expected to be exempted from the 25% punitive tariff previously imposed on India's purchase of oil from Russia.

However, Trump stressed that the precondition for the agreement was that India promised to stop buying Russian oil and import crude oil from the United States and Venezuela instead. At the same time, India needs to commit to purchasing more than $500 billion of U.S. energy, technology and other products over five years .

Looking back, in July 2025, the United States first announced a 25% "reciprocal tariff" on Indian imports to the United States , which was scheduled to take effect on August 7 of that year;

However, just one day before the tariff came into effect (August 6, 2025), the United States imposed an additional 25% punitive tariff on the grounds of India's "continued import of Russian oil". After the superposition of the two tariff policies, the United States will impose a 50% tariff on India. When

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In addition, on the day of the Trump administration's tariff adjustment landing (August 7), The United States then launched an anti-dumping and countervailing investigation into Indian imports of solar cells and components, accusing Indian companies of dumping cheap goods on the market. In order to weaken the competitiveness of new factories in the United States. (For details, please click: Make a move! The United States has officially launched a double-counter investigation into the import of photovoltaic products from the three countries.)

Now the tariffs between the United States and India have dropped sharply, which has temporarily relieved Indian solar manufacturers who have long relied on the US market.