The United States has imposed a 15% tariff on products made from polysilicon. President Trump signed the executive order on August 6, 2026. Polysilicon is a vital raw material used in semiconductors and solar panels. The tariff will take effect on December 4 after a 120-day period. This move represents a significant escalation in the ongoing trade dispute with China.
China currently controls more than 90% of global polysilicon production capacity. The new tariff also establishes minimum import prices for polysilicon and related products. Raw polysilicon must now be imported at no less than $21 per kilogram. The administration cited national security concerns as the basis for the decision. Commerce Secretary Howard Lutnick said the goal is to stop Chinese dumping.
Only two companies currently produce solar-grade polysilicon in the United States. Hemlock Semiconductor and Wacker Chemie operate factories in Michigan and Tennessee. The government plans to offer incentives for companies investing in domestic production. These measures aim to reduce reliance on foreign supply chains. If more companies invested in US facilities, the industry would become more resilient.
China's embassy in Washington responded sharply to the announcement. Beijing accused Washington of abusing state power to target Chinese businesses. The embassy argued that protectionism would not make America more competitive. Industry analysts are now monitoring how the tariff will affect downstream pricing. Solar panel and semiconductor costs could rise as a consequence of this policy.
