US imposes 15% tariff on polysilicon in new trade salvo against China
The United States has imposed a 15% tariff on imported products made from polysilicon, a key material used in semiconductors and solar panels, citing national security concerns. The move is part of an escalating trade dispute between Washington and Beijing.
US President Donald Trump signed an executive order on Thursday that also sets minimum import prices for polysilicon and related products. The order follows a national security investigation into overseas production of the material, which is critical for military equipment and electronics.
The tariff is intended to protect US manufacturers from increasing competition from China's chip industry, which holds a near monopoly on polysilicon production. The US share of global polysilicon production has fallen from 50% in 2005 to less than 2% in 2024, according to the White House.
In a statement, the Chinese embassy in Washington said the move "seriously disrupts" trade between the two countries and that Beijing would act to protect its companies. It accused Washington of "abusing state power to go after Chinese businesses" and said protectionism would not make the US more competitive.
The tariffs are due to take effect in December. The US has also said it will offer incentives to boost domestic production. Trump said in the order that he had accepted recommendations from Commerce Secretary Howard Lutnick to set minimum import prices as well as the 15% tariff.
For decades, the US has allowed "foreign firms to weaken United States producers in the polysilicon sector," Trump said, reiterating his long-held view that tariffs protect American jobs and boost the economy.
China controls the vast majority of global polysilicon production, giving it significant leverage in the supply chain for computer chips and solar panels. The production of chips is central to the competition between the US and China to develop artificial intelligence (AI), and the two countries have been engaged in a tit-for-tat tariff war since 2025, though that conflict has been on hold since May.
The new tariff marks the latest escalation in Washington's efforts to limit China's role in critical technology supply chains, according to analysts quoted by Chinese state media. The US has already imposed restrictions on imports of drones, humanoid robots, and other tech products from China.
China has announced several countermeasures this week, including tighter export controls on drones and a national security review into imported printers and copiers.
The polysilicon tariff is likely to benefit US producers Hemlock Semiconductor and Wacker Chemie, which are the main domestic manufacturers of the material. However, economists have cautioned that tariffs can raise costs for downstream industries, including electronics and renewable energy.
The executive order is the latest in a series of protectionist measures by the Trump administration, which has used national security as justification for trade restrictions on multiple fronts. The move is also seen as part of a broader geopolitical contest between the world's two largest economies over technology and supply chains.
Both countries have shown no sign of backing down, with China vowing to defend its companies' interests. The coming months will determine whether these measures lead to further escalation or a negotiated settlement.
