The US has imposed a 15% tariff and minimum import price floors on polysilicon products in a bid to reduce China’s dominance in semiconductor and solar supply chains, while boosting domestic manufacturing and national security
The United States has unveiled a fresh set of trade measures aimed at reducing China’s dominance in the global polysilicon market, imposing a 15 per cent tariff and introducing minimum import prices on products made from the critical raw material used in semiconductors and solar panels.
The White House said the measures, announced by President Donald Trump under Section 232 of the Trade Expansion Act of 1962, are intended to strengthen domestic manufacturing of critical materials needed for the country’s semiconductor, artificial intelligence (AI) and clean energy industries. The new trade protections will take effect on December 4.
US seeks to strengthen critical supply chains
In a proclamation issued on Friday, the White House said the new measures would help ensure the long-term commercial viability of US polysilicon production and reduce dependence on foreign suppliers for strategically important industries.
“The plan of action in this proclamation will, among other things, help ensure the commercial viability of United States production of polysilicon and its derivatives that is necessary to meet United States economic and national security requirements,” the proclamation said.
Polysilicon is an ultra-pure form of silicon that sits at the beginning of both semiconductor and solar manufacturing supply chains. It is processed into wafers that are used to manufacture computer chips and solar cells, which are then assembled into solar panels.
More from BusinessThe move marks another step in Washington’s broader effort to secure domestic supply chains as geopolitical tensions with Beijing continue to reshape global trade and technology policies.
Tariffs paired with import price floors
Besides imposing a 15 per cent tariff, the Trump administration has also introduced minimum import prices for several polysilicon-related products. The White House has fixed a floor price of $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules or panels.
The administration believes the combination of tariffs and minimum import prices will prevent foreign manufacturers from undercutting US producers through low-cost exports while encouraging investment in domestic manufacturing.
The proclamation also authorises the Commerce Department to establish an incentive programme for companies investing in factories that produce polysilicon or derivative products in the United States.
Fresh pressure on China’s dominance
China dominates global polysilicon production and has long been accused by US manufacturers of flooding international markets with subsidised products. American solar companies have argued that Chinese firms benefited from generous state support while shifting manufacturing operations to third countries to bypass existing US tariffs.
The latest action builds on Washington’s broader industrial strategy to rebuild domestic manufacturing capacity for strategically important sectors. Although US solar manufacturing has expanded significantly since tax incentives were introduced in 2022, much of the investment has been concentrated in panel assembly, leaving manufacturers dependent on imported wafers and solar cells that require much larger capital investments and longer construction timelines.
The semiconductor industry also relies on a healthy domestic polysilicon industry because demand from the much larger solar sector helps sustain production capacity. According to the Semiconductor Industry Association, chip manufacturing accounts for just 2.4 per cent of global polysilicon demand.
Concerns over import surge before December
Despite broad industry support, some trade experts warned that the delayed implementation could trigger a surge in imports before the new rules come into force.
Tim Brightbill, a trade attorney at Wiley Rein who has represented US solar manufacturers in trade disputes involving Chinese companies, said importers could accelerate shipments over the coming months to avoid higher costs after December 4.
At the same time, companies that purchase solar panels argued that the transition period would provide enough time to adjust supply contracts and prepare for higher import costs.
The measures represent the latest escalation in the US-China trade and technology rivalry, with Washington increasingly relying on tariffs and industrial policy to support domestic production of materials considered essential for semiconductors, artificial intelligence, renewable energy and national security.
With inputs from agencies.
