Trump Orders New 15% Tariff On Key Material For Solar Panels, Microchips

President Trump has imposed a 15% tariff on imported products containing polysilicon, a crucial component for semiconductors and solar panels. This new tariff will commence on December 4th. According to The Guardian, the executive order signed by Trump aims to ensure the commercial success of US-produced polysilicon and its derivatives, which are essential for meeting US economic and national security needs.

Polysilicon, a highly pure form of silicon, plays a vital role in creating semiconductors for AI processing, powering data centers, and generating solar energy. US solar manufacturers have frequently accused Chinese competitors of flooding the market with cheaper panels, a practice attributed to excessive government subsidies and the relocation of manufacturing operations away from the United States to evade US tariffs.

The US possesses two primary polysilicon factories. Hemlock Semiconductor operates a plant in Michigan, a joint venture between Corning, a US tech company, and Japan's Shin-Etsu Handotai. Meanwhile, Wacker Chemie manages a factory in Tennessee. In the executive order, Trump acknowledged Commerce Secretary Howard Lutnick's recommendations and set minimum import prices for various polysilicon-related products.

These include a minimum price of $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules or panels.

Additionally, the order empowers the commerce department to establish an incentive program for companies investing in polysilicon or derivative product manufacturing factories.