United States imposes polysilicon tariffs to counter China

President Donald Trump has signed a presidential proclamation imposing a 15% tariff on downstream polysilicon derivatives, including ingots, wafers, cells, and modules. The measure, taken under Section 232 of the Trade Expansion Act, frames China's dominance over the solar supply chain as a national security threat. The tariffs and price floors are scheduled to take effect in early December.

To prevent foreign producers from undercutting domestic manufacturers, the proclamation establishes minimum import prices. These include a floor of $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 finished modules. Additionally, the policy introduces domestic content requirements that mandate manufacturers reach a 50% domestic content threshold by 2026, rising to 80% by 2029.

The action aims to rebuild a U.S. manufacturing base that has seen its share of global polysilicon production fall from approximately 50% in 2005 to less than 2% in 2024. Currently, China accounts for more than 90% of global polycrystalline silicon production. The administration noted that polysilicon is a critical input for both solar energy infrastructure and semiconductor manufacturing.