US Imposes Preliminary Countervailing Duties on Solar Panels from Laos
The United States has taken a significant step to protect its domestic solar manufacturing industry by imposing preliminary countervailing duties (CVDs) on solar cells and panels imported from Laos, along with India and Indonesia. This move by the U.S. Department of Commerce aims to level the playing field by offsetting foreign government subsidies that allegedly give producers in these countries an unfair competitive advantage.
The Details of the New Solar panel countervailing duties
On February 24, 2026, the Commerce Department announced its preliminary findings, setting a country-wide countervailing duty rate of 80.67% for solar imports from Laos.
This decision means that U.S. Customs and Border Protection will now be required to collect cash deposits from importers of solar cells and panels from Laos at this rate. The investigation identified specific rates for certain companies, including Solarspace Technology Sole Co. and Vietnam Sunergy Joint Stock Company, both of which received the general 80.67% rate.
These duties are a direct response to claims that subsidies provided by the Laotian government are harming American solar manufacturers. Countervailing duties are a trade remedy tool used to counteract the market-distorting effects of such foreign government support.
Background of the Investigation
The investigation was initiated following a petition filed in July 2025 by the Alliance for American Solar Manufacturing and Trade. This coalition, which includes prominent domestic producers like First Solar, Hanwha Qcells, and Mission Solar, argued that unfairly subsidized imports were undermining the U.S. solar industry.
In 2025, imports from Laos, India, and Indonesia collectively represented two-thirds of all U.S. solar imports, totaling an estimated $4.5 billion. The U.S. International Trade Commission (ITC) had previously made an affirmative preliminary determination, finding that there was a reasonable indication that the U.S. solar industry has been materially injured by these subsidized imports.
What to Expect Next
It is crucial to remember that these are preliminary duties. The investigation is ongoing, and the final rates could change. The Commerce Department will continue its review, leading to several key dates in the coming months:
- April 21, 2026: A preliminary decision on antidumping (AD) duties, which address claims of companies selling products in the U.S. at less than fair value, is expected.
- July 2026: The final determination on countervailing duties is scheduled.
- September 3, 2026: The final combined AD/CVD rates are expected to be announced.
- October 19, 2026: The ITC will make its final injury determination. If the ITC confirms that the U.S. industry has been harmed, the duties will be locked in as long-term orders.
A Wider View of the Trade Action
Laos was not the only country targeted in this trade probe. The preliminary CVD rates set for the other nations were even higher, providing a stark comparison:
- India: 125.87%
- Indonesia: 104.38%
- Laos: 80.67%
These new tariffs will be applied in addition to any other existing duties on solar products. The action underscores a broader U.S. policy effort to bolster domestic manufacturing and secure the clean energy supply chain, particularly as significant investments flow into the American solar sector. While the final outcome remains to be seen, this preliminary decision sends a clear signal about the U.S. commitment to enforcing its trade laws.
