Indian solar equipment manufacturers faced a sharp stock sell-off Wednesday as the U.S. announced preliminary countervailing duties on solar cell and panel imports from India, Indonesia, and Laos. Waaree Energies slumped 11%, Vikram Solar fell 5.5%, and Premier Energies dropped 4.6% amid fears the tariffs could cripple export-dependent businesses. The U.S. Commerce Department cited a 125.87% subsidy rate for Indian solar exports, aiming to offset government support for domestic manufacturers in those countries.

The duties, calculated using a general subsidy rate of 125.87%, threaten to raise costs for Indian firms supplying the U.S. market. Analysts warn the move could disrupt global solar supply chains, as India ranks among the world’s top solar panel exporters. The Commerce Department’s fact sheet outlined the methodology for determining the subsidy margins, though final tariff rates will be set after a 60-day review period.

Waaree Energies, which manufactures solar modules and panels, saw its shares hit a 52-week low after the announcement. Premier Energies and Vikram Solar, both major players in India’s solar sector, also reported double-digit declines in early trading. No immediate comments were available from the affected companies.

This development follows a broader U.S. strategy to shield domestic solar manufacturers from foreign competition. While the final tariff rates remain uncertain, the preliminary findings signal a potential shift in global trade dynamics for renewable energy equipment. Investors are closely monitoring how the duties might reshape India’s solar export dominance.