US Eyes Polysilicon Price Floor, Tariffs in AI and Solar Push
Synopsis
The Trump administration is preparing measures to shield domestic polysilicon producers from Chinese competition, a move that could reshape supply chains while raising costs for chipmakers and solar developers.
Key Highlights
- The Trump administration is planning a minimum price and new tariffs on polysilicon and related products.
- The move is aimed at supporting US manufacturers and reducing China’s dominance in the supply chain.
- A decision is expected later this month.
The Trump administration is preparing to introduce a minimum price for imported silicon and new tariffs on the material and related products.
The proposed measures are expected to be announced this month. They are meant to support US companies that produce silicon as the country builds a stronger supply chain for computers and solar panels. Polysilicon is a key material used to make both.
The proposal comes after the US Commerce Department carried out a national security investigation under Section 232 of the Trade Expansion Act of 1962. According to sources, the administration plans to combine a minimum import price with tariffs.
China Criticises the Plan
A White House official did not comment before President Donald Trump makes a final decision. The Commerce Department also did not respond.
China’s embassy in Washington criticised the investigation and urged the US to end the Section 232 tariff measures and resolve trade issues through dialogue. Shares of several US-listed solar companies, including Corning, First Solar, T1 Energy, Canadian Solar and Toyo, moved higher.
Industry Warns of Higher Costs
Polysilicon is the starting material used to make silicon wafers, which are then used to produce solar cells and computer chips.
Sources said companies investing in US wafer and solar cell production may be allowed to offset some of the extra costs from the new trade measures. China holds about 80% of the world's solar manufacturing capacity.
The Trump administration has already imposed tariffs on multiple items, such as steel, cars, copper, aluminium, and lumber. It is also investigating imports on other products, such as pharmaceuticals, semiconductors, drones and more.
US solar manufacturing has grown since tax incentives were introduced in 2022, but many companies still rely on imported wafers and solar cells.
Industry groups and some lawmakers said imports from producers such as OCI Holdings and Wacker, which have factories outside China, will still be needed until US production grows.
Some industry groups also warned that the new tariffs could increase the cost of solar projects, computer chips, consumer electronics and vehicles. Martin Pochtaruk, chief executive of solar panel maker Heliene, said higher costs could reduce demand and delay some solar projects.
Source: Reuters
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