New Delhi, Feb. 26 -- After reaching a framework for a trade deal with India that raised the hope of bilateral ties settling down, Washington has thrown a fresh curve ball. On Tuesday, the US commerce department announced varying import duties on solar panels from three Asian countries, including a whopping 126% on those from India. The other two, Indonesia and Laos, also face similarly high tariffs.

Stocks of Indian solar panel companies tanked, although the effects of this US move could go beyond the sector. Trade talks between India and US were recently deferred in response to the US Supreme Court ruling that struck down Donald Trump's reciprocal tariffs. The US President replaced those with a new 10% tariff, which he threatens to rai...