According to BBC Business, US President Donald Trump signed an executive order on Thursday that imposes a 15% tariff on imported products made from polysilicon, a crucial material used in semiconductors and solar panels. The order also set minimum import prices on polysilicon and related products, following a national security investigation into overseas production of the material. The move is intended to help protect US manufacturers as they face increasing competition from China's chip industry, a key source of friction between the world's two largest economies.
Executive order details
According to BBC Business, the executive order signed by President Donald Trump on Thursday imposes a 15% tariff on imported products made from polysilicon. The order also set minimum import prices on polysilicon and related products. Trump said in the order that he had accepted recommendations by Secretary of Commerce Howard Lutnick to set the minimum import prices as well as the 15% tariff. The measures are due to take effect in December. The US will also offer incentives to boost domestic production, the report added.
Key provisions include:
- 15% tariff on imported products made from polysilicon.
- Minimum import prices on polysilicon and related products.
- Incentives for domestic production.
- Effective December.
Polysilicon and US production
According to BBC Business, polysilicon is a crucial material used in semiconductors and solar panels and is critical in military equipment and electronics. China is the world's biggest producer of polysilicon and holds a near monopoly on its production. Trump said imports have led to the US share of global polysilicon production falling from 50% in 2005 to less than 2% in 2024.
| Year | US share of global polysilicon production |
|---|---|
| 2005 | 50% |
| 2024 | Less than 2% |
Trump said that for decades, the US has allowed "foreign firms to weaken United States producers in the polysilicon sector," according to BBC Business. The report noted that Trump has long advocated for the use of tariffs to protect American jobs and boost the economy.
Reaction from China
The Chinese embassy in Washington said the move "seriously disrupts" trade between the two countries and that Beijing will act to protect its companies, according to BBC Business. The embassy also said Washington is "abusing state power to go after Chinese businesses" and that protectionism will not make the US more competitive.
The move "seriously disrupts" trade between the two countries, and Beijing will act to protect its companies. Washington is "abusing state power to go after Chinese businesses," the embassy said, adding that protectionism will not make the US more competitive.
Impact on US producers and wider tech rivalry
According to BBC Business, the order is likely to benefit US firms Hemlock Semiconductor and Wacker Chemie, the main domestic producers of polysilicon. The report also said the production of computer chips is central to the race between the US and China to develop artificial intelligence (AI). Analysts quoted by Chinese state media outlet Global Times said the new tariff marks the latest escalation in Washington's efforts to limit China's role in critical technology supply chains. The move follows other US restrictions on the imports of drones, humanoid robots and other tech products from China, BBC Business reported.
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