Shares of Canadian Solar Inc. (CSIQ) surged over 5% in pre-market trading on Tuesday, buoyed by positive developments that could significantly benefit the company's prospects in the crucial U.S. market.

According to reports, the U.S. Department of Commerce is considering partially revoking anti-dumping and countervailing duties on crystalline silicon photovoltaic products from China. This potential move to ease trade restrictions on Chinese solar panel imports has been long-awaited by Canadian Solar and its industry peers, who have argued that the duties imposed by the previous U.S. administration unfairly hampered their ability to compete in the American market.

The news has sparked optimism among investors, driving Canadian Solar's stock higher in early trading. Additionally, the company's shares were supported by bullish options activity, with implied volatility rising amid elevated call buying, suggesting traders are positioning for further upside in the stock price.