Trump orders new 15% tariff on key material for solar panels and microchips | Trump administration
US politics | The Guardian — 2026-08-07 04:11:00 — www.theguardian.com
Trump Orders 15% Tariff on Chinese Polysilicon to Boost U.S. Chip and Solar Industries
President Donald Trump has signed an executive order imposing a new 15% tariff on imported products made of polysilicon, a key material in microchip and solar panel manufacturing that is primarily produced by China. The tariff, set to take effect on December 4, is part of a broader effort to strengthen U.S. supply chains in critical sectors such as artificial intelligence and renewable energy.
In the executive order, Trump stated: “The plan of action in this proclamation will, among other things, help ensure the commercial viability of United States production of polysilicon and its derivatives that is necessary to meet United States economic and national security requirements.” The order also sets minimum import prices for polysilicon and related products, including $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules or panels.
The administration’s move comes amid longstanding complaints from U.S. solar manufacturers, who accuse Chinese competitors of flooding the market with cheaper products, allegedly enabled by government subsidies and efforts to circumvent existing tariffs. Trump’s order also authorizes the Commerce Department to create an incentive program for companies investing in domestic polysilicon production.
China’s Ministry of Foreign Affairs criticized the new tariffs, accusing the U.S. of “overstretching the concept of national security, and abusing state power to go after Chinese businesses.” Chinese officials warned that such protectionism “seriously disrupts normal trade and economic exchanges between Chinese and US businesses, and is not in the interest of US businesses and consumers or anyone else for that matter.”
Industry Response and Economic Context
The U.S. currently has two major polysilicon factories: Hemlock Semiconductor in Michigan and Wacker Chemie’s facility in Tennessee. Industry representatives welcomed the tariff, with Corning, a Hemlock partner, saying it encourages “continued investment in US capacity and supports long-term US competitiveness.” Wacker Chemie also expressed appreciation for the administration’s engagement on supply chain resilience and national security.
Trump’s action comes as China’s exports, particularly in AI-related products, have surged, with a 23.9% year-on-year increase in July. Experts note that China’s strength in electronics, AI hardware, and other advanced manufacturing sectors continues to drive its global export market share.
Conclusion
President Trump’s decision to impose a 15% tariff on Chinese polysilicon reflects his administration’s ongoing efforts to address concerns about U.S. economic and national security vulnerabilities in critical technology sectors. While the move is praised by some domestic manufacturers, it has drawn sharp criticism from China and raised questions about the broader impact on global trade and consumer costs. As the policy takes effect, its effectiveness in bolstering U.S. industry and countering Chinese competition will be closely watched.