Countervailing duty (CVD)

The US Department of Commerce has initiated an anti-dumping and countervailing duty (CVD) investigation on solar PV cells and modules imported from India, Indonesia, and Laos during calendar year 2024.

• The probe, launched on August 7, 2025, follows a petition from the Alliance for American Solar Manufacturing and Trade. This is the latest in a series of actions the U.S. has taken to protect its domestic solar industry from what it alleges are unfair trade practices.

What is a Countervailing Duty?

• A countervailing duty (CVD) is a specific import tax imposed by an importing country to counteract subsidies that a foreign government provides to its domestic producers.
• The goal of this duty is to nullify the price advantage gained from these subsidies, bringing the imported product’s cost closer to its true market value.
• This action is permitted under World Trade Organization (WTO) rules and is intended to create a level playing field for domestic manufacturers.