Mumbai’s stock market took a sharp hit on Wednesday as shares of solar energy companies tumbled following President Donald Trump’s announcement of steep tariffs on Indian solar imports. The US imposed a whopping 126% duty on solar products from India, citing unfair subsidies that allegedly harm American manufacturers.
The decision sent shockwaves through the sector. Waaree Energies, a leading player, saw its stock drop as much as 15% during trading before recovering slightly to close 10.83% lower at 2,697 rupees. Premier Energies fared even worse, with shares plunging around 14% intraday and ending 6.19% down at 728.95 rupees.
Vikram Solar also felt the pressure, with its stock declining 7.76% during the session and trading 5.67% lower at 174 rupees by late afternoon. Investors rushed to sell off holdings amid fears that the tariffs could severely impact export revenues for these firms heavily reliant on the US market.
The Trump administration didn’t stop at India. It also levied 143% tariffs on Indonesian solar goods and 81% on those from Laos. These countries together accounted for 57% of US solar module imports in the first half of 2025. India’s solar exports to the US surged to $792.6 million in 2024, a ninefold increase from 2022 levels.
This move comes in response to a petition from the US Solar Group, a coalition of American solar manufacturers claiming that foreign subsidies are distorting the market and threatening domestic jobs. As the solar industry grapples with this new trade barrier, analysts warn of broader implications for India’s renewable energy ambitions and global supply chains. Market watchers will be closely monitoring how these companies pivot in the coming days.