Donald Trump has ordered a 15% tariff on imported products made with polysilicon, an ultra-pure form of silicon used in semiconductors and solar power equipment. The tariff will take effect on 4 December.
The order is intended to support US chip and solar-panel supply chains as Washington seeks to compete with China in artificial intelligence and energy. It also sets minimum import prices for polysilicon and several related products.
At a glance:
- The tariff applies to imported products made with polysilicon and begins on 4 December.
- Minimum import prices include $21 a kilogram for polysilicon and $100 a kilogram for polysilicon ingots and wafers.
- The order sets minimum prices of $0.22 a watt for solar cells and $0.38 a watt for solar modules or panels.
- The US has two main polysilicon factories, operated by Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee.
What the order does
Trump’s executive order accepts recommendations from commerce secretary Howard Lutnick to impose the 15% tariff and establish minimum import prices for polysilicon and derivative products. The order says the measures are intended to help keep US production commercially viable for economic and national security needs.
Related coverage: New US Tariffs May Be Imposed as Existing Trade Duties Near Expiration.
The commerce department may also create an incentive programme for companies that invest in factories producing polysilicon or related products. The order covers supply-chain materials used in microchip manufacturing, solar cells and solar panels.
Why polysilicon matters
Polysilicon is an important input for semiconductors that provide processing power for artificial intelligence and datacentres. It is also used in solar power generation, linking the tariff to both advanced computing and energy manufacturing.
US solar factories have accused Chinese competitors of selling cheaper panels, saying government subsidies and shifts in manufacturing to other countries have helped companies avoid US tariffs. China is the main producer of polysilicon.
More context: Small US Businesses File Lawsuit Against Trump’s Latest Forced Labor Tariffs.
China and US manufacturers respond
China’s foreign affairs ministry criticised the tariff, saying the US was overstretching national security concerns and using state power against Chinese businesses. Spokesperson Lin Jian said protectionism would not make the US more competitive and pledged to protect Chinese companies’ lawful interests.
Corning, which is part of the joint venture operating Hemlock Semiconductor’s Michigan plant, said the tariff encouraged investment in US capacity. Wacker Chemie, which operates a Tennessee factory, said it welcomed the administration’s engagement because of its implications for semiconductor supply resilience, advanced computing, defence and security.
Also read: Overview of Trump’s latest tariffs imposed on more than 80 countries.
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