BEIJING (dpa-AFX) - Thursday, President Donald Trump signed a Proclamation imposing 15 percent tariff on imported products made from polysilicon, a crucial material used in semiconductors and solar panels.
The White House said the measure is taken to protect America's polysilicon industry and supply chain from imports that threaten national security, an apparent reference to significant competition that U.S. makers face from China's chip manufacturing industry.
The Proclamation imposes a minimum import price program on imports of polysilicon and polysilicon derivatives to create a level playing field for American producers of these strategic goods.
In order to encourage onshoring of these industries, the Proclamation authorizes the Secretary of Commerce to establish an incentive program for companies that will invest in building, expanding, or refurbishing facilities that produce polysilicon and polysilicon derivatives.
This program will ensure commercial viability of U.S. production of polysilicon and its derivatives and enhance employment opportunities for Americans.
The new tariff will take effect after 120 days.
Trump said the polysilicon tariff program will protect the national security of the United States and its defense and defense-adjacent industrial base.
Polysilicon is a key building block for the semiconductor industry with important national defense and defense-related uses.
For decades, foreign governments have dumped polysilicon and its derivatives into the U.S. market, eliminating U.S. producers and jobs.
The United States' share of global polysilicon production capacity has fallen from 50 percent in 2005 to less than 2 percent in 2024.
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