US imposes tariffs and price floors on Chinese-dominated polysilicon supply chain
US President Donald Trump has signed a executive proclamation under Section 232 of the Trade Expansion Act of 1962, introducing a 15 per cent tariff and minimum import price floors on products made from polysilicon.
The critical raw material forms the foundational supply chain for both semiconductor chips and solar panels, a sector currently dominated by Chinese manufacturing.
The executive action establishes clear import price thresholds across key processing stages. Under the new policy, raw polysilicon is set at a minimum price floor of $21 per kilogram, while polysilicon ingots and wafers are capped at a floor of $100 per kilogram. Solar cells face a minimum price of $0.22 per watt, and finished solar modules or panels carry a minimum threshold of $0.38 per watt.
The order also directs the Commerce Department to establish targeted incentive programs for domestic companies investing in polysilicon production facilities.
While semiconductor manufacturing accounts for roughly 2.4 per cent of global polysilicon demand, the material’s economic viability depends directly on the volume scale maintained by solar manufacturing.
US solar manufacturers and polysilicon producers, including Corning, Hemlock Semiconductor, Wacker Chemie, First Solar, and Qcells, welcomed the strategic protections as essential for safeguarding domestic supply chains necessary for advanced computing and renewable energy.
The new trade protections take effect on 4 December 2026, granting buyers a four-month window to adjust existing supply contracts before the higher price thresholds apply.
