Trump Imposes 15% Polysilicon Tariffs to Boost Domestic Manufacturing

President Donald Trump signed a proclamation on August 6, 2026, imposing a 15% tariff and establishing minimum import prices for polysilicon and its derivatives, including silicon wafers, photovoltaic cells, and solar modules. Effective December 4, the measures aim to revitalize the U.S. polysilicon sector and secure supply chains for semiconductors and solar energy, which the administration deems critical for national security and competition in artificial intelligence.

The order establishes price floors, including $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules. Following a Department of Commerce investigation, the administration noted that the U.S. share of global production fell from 50% in 2005 to less than 2% in 2024. To support domestic growth, Commerce Secretary Howard Lutnick was directed to create an incentive program for companies expanding U.S. factories.

U.S. manufacturers, including First Solar and Corning Inc., praised the move as a win for domestic manufacturing. However, the Government of China condemned the action as trade protectionism and an abuse of state power. To mitigate global impact, the administration capped total duties at 15% for several allies, including the EU, Japan, and South Korea, and at 10% for the UK. Market analysts expect utility-scale solar module prices to rise from 30 cents per watt to the low-to-mid 40-cent range, potentially increasing installation costs while benefiting domestic producers.