Trump imposes minimum import prices and 15% tariff on polysilicon
On Thursday, US President Donald Trump signed an executive order imposing minimum import prices and a 15% tariff on polysilicon, a key material for solar panels and semiconductors. When an administration of a country that once dominated polysilicon production and now produces less than 2% of the global supply decides to protect its industry with tariffs and minimum prices, it reads like a story of how globalisation has shifted the balance of power. Polysilicon is the foundation of modern energy and electronics, and the battle over it has become part of a broader tech war between the US and China.
Trump calls it "bringing manufacturing back", but for the market it signals higher prices for solar panels and chips, which could slow the transition to green energy. The question is whether protectionism can restore past glory or only deepen reliance on imports, undermining the competitiveness of American industry.
According to a White House statement, minimum import prices will be set at US$21 per kilogram for polysilicon and US$100 per kilogram for polysilicon ingots and wafers. The new trade measures are to take effect on 4 December. Trump also directed the US Department of Commerce to create a programme to incentivise investment in domestic production of raw polysilicon and related products.
According to a White House fact sheet, the measures are intended to create "a level playing field for American producers of these strategic goods", encourage "the return of these industries to the country" and protect "US national security and its defence and defence related industrial base". According to the fact sheet, the US share of global polysilicon production fell from 50% in 2005 to less than 2% in 2024.
Polysilicon is a critical raw material for solar panels and semiconductors, which underpin both renewable energy and defence technologies. China currently dominates global polysilicon production, controlling more than 80% of the market, giving it significant leverage over global supply chains. The new US tariffs and minimum prices could raise the cost of solar projects in the US, which runs counter to the administration's clean energy goals.
However, the White House is betting on the long term recovery of domestic production, citing the strategic need to reduce dependence on China. The US has previously imposed tariffs on Chinese polysilicon and solar panels, but that did not halt the decline in US producers' market share. Now the Trump administration hopes that minimum prices and investment incentives will reverse the trend, though experts doubt this is possible in the short term.
As CCTV+ reports, the new US measures on polysilicon are another step in the trade standoff between the world's two largest economies, and their fallout could affect not only solar energy prices but also the entire global semiconductor supply chain, where China maintains a dominant position.
