The Trump administration is moving to impose tariffs and minimum import prices on imported polysilicon.
On August 5, Bloomberg reported, citing sources familiar with the matter, that the administration could announce these trade measures as early as August 6.
Officials have discussed imposing a minimum tariff of 15% on imported polysilicon. They are also considering applying minimum import prices to polysilicon raw materials as well as to wafers, solar cells, and solar modules produced from it. Investment bank Ross Capital Partners has projected that the tariff rate could reach between 25% and 35%.
However, the administration was still finalizing the details of the proclamation as of the afternoon of August 6, meaning the final tariff rates and applicable products could change.
This action is based on the results of a polysilicon investigation initiated by the U.S. Department of Commerce under Section 232 of the Trade Expansion Act last year. The department has been examining the impact of the U.S. reliance on foreign polysilicon raw materials and related products on national security.
The Trump administration also plans to introduce a temporary offset support program to mitigate the impact on U.S. manufacturers that rely on imported raw materials. This support is expected to be linked to the scale of capital investments these companies make in the U.S.
Polysilicon is a key material used in both the semiconductor and solar industries. High-purity electronic-grade polysilicon is used as a raw material for semiconductor chips found in smartphones, medical devices, precision-guided munitions, and aircraft control systems. Lower-purity solar-grade polysilicon is used to manufacture crystalline silicon solar panels.
Currently, U.S. polysilicon production capacity is limited. If tariffs are implemented, companies like Hemlock Semiconductor, a subsidiary of Corning based in Michigan, and German firm Wacker Chemie, which operates in Tennessee, are expected to benefit.
The U.S. polysilicon industry has called for trade relief measures to focus on products linked to Chinese supply chains during the Commerce Department's investigation. They argue that due to China's overproduction and below-cost sales, it is difficult for U.S. solar-grade polysilicon production to achieve profitability, necessitating tariffs that can offset this situation.
There have also been calls for policies to restrict the use of Chinese polysilicon in critical U.S. infrastructure and defense equipment while encouraging the purchase of American-made products.
On the other hand, the Consumer Technology Association (CTA) has warned that polysilicon tariffs could increase cost burdens across the semiconductor and electronics supply chains. They noted that once polysilicon is processed into wafers and semiconductors and incorporated into finished products, tracking the origin becomes challenging, complicating actual tariff enforcement.
CTA suggested that instead of tariffs, the U.S. should reduce risks associated with foreign dependence through supply agreements with other countries or by utilizing a strategic stockpiling system domestically.
Following the news of the tariff proposal, shares of U.S. solar companies fell. First Solar, the largest solar manufacturer in the U.S., dropped as much as 7.3% during trading, while T1 Energy, which operates a solar plant in Texas, saw a decline of up to 13%.
* This article has been translated by AI.
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