US President Donald Trump issued an executive order on Thursday establishing a 15% tariff on imported polysilicon products and setting minimum import prices for the material and related items. The order follows a national security investigation into overseas polysilicon production and is designed to strengthen the competitive position of American manufacturers against Chinese industry competition.
Polysilicon is a critical component in semiconductor and solar panel manufacturing, as well as military equipment and electronics. According to the executive order, the United States has experienced a significant decline in its share of global polysilicon production, falling from 50% in 2005 to less than 2% in 2024, with China now controlling a near monopoly on production. Trump stated that foreign firms have been allowed to weaken US producers in the sector for decades.
The measures are scheduled to take effect in December. Secretary of Commerce Howard Lutnick made recommendations that Trump accepted regarding both the tariff rate and minimum import price mechanisms. The administration also plans to offer incentives aimed at boosting domestic polysilicon production. US producers Hemlock Semiconductor and Wacker Chemie are expected to benefit from the tariffs.
China’s embassy in Washington responded by characterizing the action as seriously disrupting bilateral trade and accused the US of abusing state power against Chinese businesses. Beijing stated it would take protective measures for its companies and argued that protectionist policies would not enhance American competitiveness. The move represents the latest escalation in ongoing US efforts to restrict China’s access to critical technology supply chains, following earlier restrictions on drones, humanoid robots, and other technology imports. China has already announced countermeasures including export controls on drones and launched a national security review of imported printers and copiers.
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