India, Feb. 25 -- US President Donald Trump has imposed preliminary duties of 126% on solar imports from India, a move that threatens to derail the India-US trade deal.

The US Commerce Department announced the levies after a determination that New Delhi unfairly subsidised its domestic manufacturing, allowing exporters to undercut American-made products. Beyond India, the department set initial rates ranging from 86% to 143% for Indonesia and 81% for Laos.

The decision comes barely weeks after New Delhi and Washington agreed on a framework for the India-US trade deal to bring down tariff on India's exports to 18% from 50% earlier. That was before the US Supreme Court quashed Trump tariffs, calling them unconstitutional. Trump then pivot...