U.S. Imposes Minimum Prices and 15% Tariff on Polysilicon
U.S. President Donald Trump signed a proclamation on Aug. 6 (local time), setting a Minimum Import Price (MIP) to prevent dumping and imposing an additional 15% tariff on polysilicon and its derivatives, which are core raw materials for solar panels and semiconductors. This measure is the final outc
On August 6th, President Donald Trump signed a proclamation imposing a Minimum Import Price (MIP) and adding a 15% tariff on polysilicon and its derivatives, crucial components for solar panels and semiconductors. This decision came after an investigation under Article 232 of the Trade Expansion Act, initiated by the US Department of Commerce in July 2025. The move aimed to address the rapid decline of the US domestic polysilicon manufacturing base and the nation's growing reliance on foreign sources.
China, responsible for over 80% of the global polysilicon market, faced the harshest consequences. Similarly, South Korea, Japan, Taiwan, and EU member states were also subject to an additional 15% tariff. However, countries with existing trade agreements, such as South Korea and Japan, saw their total tariff capped at 15% to mitigate the impact.
The US government established an Incentive Program allowing companies to apply for tariff exemptions if they construct, renovate, or expand polysilicon and derivative production facilities within the US. However, these companies must submit an implementation plan before January 20, 2029, to qualify for the exemption.
The measure is expected to have a significant impact on the global trade landscape, particularly for China. South Korean companies, such as Hanwha Qcells, stand to benefit from the forced investment measure, as it encourages local production. The US will officially enforce the Minimum Import Price and tariff structure as of December 4, 2026.
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