The United States has imposed a 15% tariff on imported polysilicon, a critical material used in semiconductor and solar panel manufacturing. The executive order, signed by President Donald Trump, also established minimum import prices for the substance and related products. The measures are scheduled to take effect in December.
This action follows a national security investigation into overseas production of polysilicon and is intended to address increasing competition faced by U.S. manufacturers from China's chip industry. Polysilicon is essential for military equipment and electronic devices. According to the administration, the U.S. share of global polysilicon production has fallen from 50% in 2005 to less than 2% in 2024, while China now holds a near monopoly.
The U.S. will also offer incentives to encourage domestic production of polysilicon, a move Trump stated is aimed at protecting American jobs and boosting the economy. The administration noted that for decades, foreign firms have been able to undermine U.S. producers in the polysilicon sector.
This tariff is the latest in a series of U.S. restrictions on Chinese technology products, including drones and robots, and is seen by analysts as an escalation in efforts to limit China's role in critical technology supply chains. The production of computer chips is central to the ongoing competition between the U.S. and China in the development of artificial intelligence.
In response, the Chinese embassy in Washington stated that the U.S. move "seriously disrupts" trade between the two nations and that Beijing will take protective measures for its companies. The embassy characterized the action as an "abuse of state power" and asserted that protectionism will not enhance U.S. competitiveness.