Waaree Under U.S. Customs Investigation Over Alleged Tariff Evasion

Background of the Probe

Waaree Energies, India’s leading solar module manufacturer, is under formal investigation by U.S. Customs and Border Protection (CBP) over allegations of evading anti-dumping and countervailing duties on solar products. The probe was triggered by complaints from American solar industry groups, which accused Waaree of relabeling Chinese-made solar cells and panels as Indian-origin to circumvent Section 201 safeguard tariffs. These tariffs, introduced by the Trump administration in 2018, started at 30% and were gradually reduced to 15% over four years.

Market and Trade Context

U.S. imports of Indian solar panels have surged in recent years, partly due to tariffs and tightened inspections that restricted shipments from Southeast Asian nations. This shift elevated India’s role as a supplier but also drew regulatory scrutiny.

In response to the investigation, Waaree’s shares fell nearly 7% on the NSE, reflecting investor unease over trade risks and regulatory uncertainty.

CBP Measures and Industry Pressure

CBP has asked Waaree to submit cash deposits during the investigation to safeguard U.S. revenues, citing “reasonable suspicion” that some imports were improperly declared. The move follows rising complaints from the American Alliance for Solar Manufacturing Trade Committee, which represents U.S.-based solar manufacturers lobbying for a level playing field.

Waaree’s Position and Global Strategy

Waaree has denied any wrongdoing and pledged full cooperation with U.S. authorities, stating it complies with all applicable laws in every country it operates. The company’s supply chain profile shows heavy dependence on imports of raw materials — nearly 90% sourced from China and other Southeast Asian countries as of FY24.

At the same time, Waaree has been expanding its U.S. footprint, with a 1.6 GW manufacturing facility in Texas under its American subsidiary, underscoring its strategy to strengthen local production while maintaining global supply chains.

Broader Implications

The inquiry highlights growing trade tensions in the solar sector as U.S. agencies widen their investigations to cover imports from Indonesia, Laos, and India. The outcome of the probe could influence current and future tariff structures, directly impacting Waaree’s export strategy and shaping its global competitiveness in an increasingly protectionist market.