Trump imposes 15% tariff on key chip material to counter China
The move aims to counter Chinese producers, which hold a monopoly in the global polysilicon production.
US President Donald Trump has imposed a 15% tariff on imported products made from polysilicon, a key material used in semiconductors and solar panels, in an effort to counter China's growing influence in the chip industry. The executive order, which also sets minimum import prices on polysilicon and related products, was prompted by a national security investigation into the overseas production of the material.
The Chinese embassy in Washington condemned the move as a serious disruption to trade between the two countries and vowed to protect its domestic companies. Trump claimed that the US share of global polysilicon production has plummeted from 50% in 2005 to less than 2% in 2024 due to imports, and he has long advocated for the use of tariffs to protect American jobs and bolster the economy.
The new measures are expected to benefit US producers such as Hemlock Semiconductor and Wacker Chemie, which are the primary domestic manufacturers of polysilicon. Analysts have noted that the tariff is part of an escalating trade war between the US and China, with Beijing responding by tightening export controls on various tech products.
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