Tariff follows national security probe
President Donald Trump signed an executive order on Thursday that places a 15% tariff on imported products made from polysilicon. Polysilicon is a key raw material used in semiconductor chips and solar panels. The order came after a national security investigation into overseas production of the material.
The order also sets minimum import prices on polysilicon and related goods such as wafers and solar cells. The measures are due to take effect in December.
China dominates polysilicon production
Chinese companies hold about 96% of global polysilicon production. That dominance has made the material a flashpoint in the trade battle between Washington and Beijing. US officials say reliance on Chinese supply poses a risk to domestic chip and solar manufacturing.
The tariff is aimed at protecting American producers as they face growing competition from China's chip industry. Trump said the US had allowed foreign firms to weaken domestic producers in the polysilicon sector for too long.
Incentives for US manufacturers
The administration said it will offer incentives to boost domestic production of polysilicon. Details of those incentives have not been fully spelled out, but officials framed the package as part of a broader push to rebuild US manufacturing capacity in critical materials.
The move is the latest in a series of trade actions targeting technology supply chains. Industry analysts say the tariff could raise costs for solar developers while giving US producers more room to compete. The long-term effect will depend on how quickly domestic factories can scale up.
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