Move to raise levy on goods made with polysilicon aims to protect domestic US supply chains from China, the major producer
President Donald Trump has signed an executive order establishing a 15% import tariff on foreign-made polysilicon and related derivatives, set to take effect on December 4. The directive follows recommendations from Commerce Secretary Howard Lutnick and is designed to strengthen domestic semiconductor and solar supply chains.
The measure introduces minimum import pricing thresholds, establishing floors of $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules and panels. Additionally, the directive authorizes the Commerce Department to establish an incentive initiative for firms investing in domestic production facilities for polysilicon and its derivatives.
Polysilicon serves as a foundational material for semiconductors used in artificial intelligence infrastructure and data centers, as well as for solar energy production. The United States currently operates two primary polysilicon manufacturing sites: a Michigan facility run by Hemlock Semiconductor, a joint venture involving Corning and Shin-Etsu Handotai, and a Tennessee plant operated by Munich-based Wacker Chemie.
Representatives for Corning noted that the tariff supports ongoing domestic investment and long-term market standing, while Wacker acknowledged the administration's outreach regarding semiconductor resilience and defense security. Conversely, domestic solar producers have previously criticized Chinese competitors for flooding the market with low-cost panels backed by heavy state subsidies and relocated manufacturing intended to bypass existing American tariffs.
China's Foreign Ministry strongly criticized the policy, with spokesperson Lin Jian accusing Washington of broadening national security definitions and misusing state authority against Chinese enterprises. Lin stated that protectionism fails to enhance American competitiveness, disrupts standard economic and commercial exchanges, and harms businesses and consumers globally, adding that Beijing will actively safeguard the rights of its commercial entities.
The trade action coincides with data showing Chinese exports grew by 23.9% in dollar terms year-on-year in July, fueled largely by artificial intelligence-related shipments. Oxford Economics senior Asia economist Sheana Yue noted that robust shipments of electronics, machinery, and industrial materials indicate artificial intelligence and electrification will continue to propel international manufacturing, enabling China to maintain its export market share despite weaker demand.
Originally reported by The Guardian on Aug 7, 2026.
