Donald Trump Imposes 15% Tariff on Polysilicon Imports

President Donald Trump signed a proclamation on Thursday establishing a 15 percent tariff and a minimum import price for polysilicon and products made with the material. The measure, which takes effect in early December, aims to secure the domestic supply of a key component used in semiconductors and solar panels. The administration identified the material as essential for national security, specifically for defense systems including drones, missiles, and radar.

The order follows a United States Department of Commerce investigation concluding that polysilicon imports threaten national security. The move specifically targets global market distortions caused by the Government of China, which produces approximately 90 percent of the world's supply compared to less than 2 percent in the United States. To further support domestic growth, the proclamation directs Commerce Secretary Howard Lutnick to create an incentive program for companies building or expanding polysilicon factories within the U.S.

Prior to the signing, the administration weighed requests from domestic manufacturers to accelerate the implementation timeline. While some stakeholders pushed for a 30- to 90-day window to prevent a surge of cheap imports, the administration ultimately set the effective date for December, roughly 120 days after the announcement. Trade groups and manufacturers, including Hanwha Qcells and the Coalition for a Prosperous America, praised the action as a necessary step to stop foreign competitors from circumventing tariffs via third-party nations.