The United States has imposed preliminary countervailing duties on solar cells and panels imported from Indonesia, with rates ranging from 86% to 143%, following a determination that exporters benefited from government subsidies, according to the U.S. Commerce Department. 

According reports from Bloomberg and Reuters, the Commerce Department set initial levies between 86% and 143% for Indonesia as part of a broader decision covering India and Laos. The measures are based on findings that subsidies allowed exporters to undercut U.S. domestic solar producers. India faces preliminary duties of 126%, while Laos faces 81%. 

The Commerce Department calculated a general subsidy rate of 104.38% for imports from Indonesia. Specific companies were assigned individual rates, including 143.3% for PT Blue Sky Solar and 85.99% for PT REC Solar Energy. 

The decision follows a petition filed last year by the Alliance for American Solar Manufacturing and Trade, a group representing U.S. solar manufacturers including Hanwha Qcells, First Solar and Mission Solar. The group alleged that companies operating in India, Indonesia and Laos received government subsidies that harmed the competitiveness of U.S. producers. 

Tim Brightbill, lead attorney for the Alliance, said the finding was “an important step toward restoring fair competition in the U.S. solar market,” adding that American manufacturers are investing billions of dollars to expand domestic capacity. 

The U.S. International Trade Commission has launched an investigation into the countervailing and anti-dumping claims. The Commerce Department is expected to issue a final determination in July and is also conducting a concurrent anti-dumping probe to determine whether solar cells from the three countries were sold below production cost in the U.S. market. 

Indonesia has emerged as a growing supplier of photovoltaic equipment to the United States in recent years. According to data cited by IDN Financials from the International Trade Centre, Indonesia’s photovoltaic equipment exports reached approximately USD 279.6 million in 2023, with the United States as the primary destination. The export value rose to around USD 564 million in 2024. In the January–July 2025 period alone, exports had reached approximately USD 684 million, with the majority shipped to the U.S. market. 

India, Indonesia and Laos accounted for 57% of solar-module imports to the United States in the first half of 2025, according to BloombergNEF data cited by Bloomberg. Reuters reported that the three nations accounted for USD 4.5 billion in solar imports last year, representing about two-thirds of total imports in 2025. 

The trade action comes amid broader shifts in global solar manufacturing. Bloomberg reported that Chinese solar manufacturers, facing existing U.S. tariffs, have relocated production to Southeast Asia to maintain access to the U.S. market. Earlier trade cases resulted in steep tariffs on imports from Malaysia, Vietnam, Thailand and Cambodia, leading to a decline in shipments from those countries. 

According to the U.S. Energy Information Administration, cited by IDN Financials, U.S. solar panel imports exceed USD 15 billion annually, with more than 80% sourced from overseas, particularly from Asia. 

The new preliminary duties on Indonesian solar products add to a series of U.S. trade measures targeting solar imports from Asia. The final outcome of the current investigation is expected in July.