US sets 15% polysilicon tariff, price floors to challenge China’s dominance

The United States has imposed new tariffs and price floors on polysilicon and related products, aiming to challenge China's dominance in key materials used in solar panels and semiconductor manufacturing. President Donald Trump signed the proclamation on Thursday, with the tariff set to take effect after 120 days. Commerce Secretary Howard Lutnick stated that the policy aims to prevent further dumping of Chinese polysilicon and to promote domestic manufacturing.

The minimum import price program aims to create a protected domestic market, enabling US producers to compete without global distortions. China holds a near-monopoly on polysilicon production, accounting for over 90 percent of global output, while the US share has dwindled from 50 percent in 2005 to less than 2 percent. China expressed opposition to the tariffs, with the foreign ministry spokesman Lin Jian arguing that protectionism would not make the US more competitive.

The move comes after China retaliated with its own measures, including export controls on drones and sanctions against US companies. Despite the escalating tensions, both nations have not yet impacted preparations for Chinese President Xi Jinping's anticipated visit to the US in September.