Trump Imposes 15% Tariff on Polysilicon to Bolster US Solar, Chip Supply

Donald Trump signed an executive order Thursday evening imposing a 15 percent tariff on imported products made from polysilicon, the ultra-pure silicon used in semiconductors and solar panels. The measure, set to take effect December 4, also establishes minimum prices on certain related imports under Section 232 of the Trade Expansion Act of 1962. The White House framed the action as essential to protect American manufacturing and counter Beijing in the races for artificial intelligence dominance and clean energy production.

The proclamation argues that decades of foreign competition have eroded U.S. producers in the polysilicon sector, threatening both economic and national security interests. Only two domestic polysilicon facilities currently operate, one in Michigan run by Hemlock Semiconductor and another in Tennessee operated by Wacker Chemie. Administration officials said the tariffs would help ensure the commercial viability of these plants and encourage further investment in U.S. capacity.

Solar industry shares reacted positively in early trading. First Solar rose more than 7 percent, while the Invesco Solar ETF gained 4 percent. Solaredge Technologies also ticked higher. Industry advocates have long claimed that Chinese manufacturers benefit from heavy state subsidies and have shifted production to third countries to evade earlier U.S. duties, allowing them to flood the market with low-cost panels.

China responded sharply. A foreign ministry spokesperson accused Washington of overstretching the concept of national security and abusing state power against Chinese companies. The statement warned that protectionist steps would fail to improve American competitiveness and would instead disrupt normal commercial exchanges, harming businesses and consumers on both sides. Beijing has repeatedly described similar U.S. actions as unilateral and destabilizing to global supply chains.

The new tariffs arrive as the United States attempts to rebuild domestic semiconductor and solar manufacturing. Polysilicon sits at the base of both industries, feeding into wafers, cells and finished panels. Supporters of the policy, including executives at Corning, which holds a stake in Hemlock, welcomed the move as a signal that encourages long-term investment. Wacker said it was still reviewing the details.

Critics outside the administration, however, note that tariffs of this kind often raise costs for downstream manufacturers and ultimately for households installing solar systems or purchasing electronics. Past rounds of duties on Chinese solar goods have produced mixed results, sometimes prompting production shifts rather than genuine domestic expansion. The latest step extends a pattern of using national security justifications to reshape trade flows, a tactic that has drawn fire from trading partners and some U.S. importers alike.

With the December implementation date approaching, companies across the solar and chip sectors are now assessing how the price floors and duties will alter sourcing decisions. The administration maintains the policy will strengthen supply chain resilience, yet the immediate effect has been another escalation in the long-running economic confrontation with China.