Trump Signs Executive Order Imposing 15% Tariff on Polysilicon, Setting Minimum Import Prices

US President Donald Trump has signed an Executive Order imposing a 15 percent tariff on products made from polysilicon, a high-purity form of silicon widely used as a raw material in solar panels and semiconductors. The order also establishes minimum import prices for polysilicon and related downstream products, a move aimed at shielding domestic producers from what the administration describes as foreign-driven oversupply.

The Executive Order, set to take effect on December 4, 2026, introduces minimum import prices 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. Tariffs under the order are paid by the importer, not the exporter, a detail that could reshape procurement strategies for US-based manufacturers and project developers reliant on imported materials.

The order argues that decades of foreign industrial policy have systematically weakened the American polysilicon sector. It cites advice and information from Secretary of Commerce Howard Lutnick, who found that global polysilicon production has grown by more than 270 percent since 2020, with inventories reaching a record high of 400,000 tons by the end of 2024. Despite that global expansion, the US share of polysilicon production capacity has plummeted from 50 percent in 2005 to less than two percent in 2024, according to the order.

Roughly 90 percent of the world's polysilicon production originates in China, a concentration that the administration says poses both economic and national security risks. "For decades, foreign governments – recognizing the strategic importance of polysilicon and polysilicon derivatives – designed policies to increase the production of these products in their countries, which have come at the expense of the United States industry. These policies contributed to global oversupply in polysilicon and polysilicon derivative sectors," the order reads.

Beyond the tariff and price floors, the US government will begin offering incentives to companies that invest in domestic production of polysilicon and polysilicon derivatives. This dual approach – punitive measures on imports paired with subsidies for local manufacturing – signals a broader industrial strategy to rebuild supply chain resilience in critical materials used across both the energy and semiconductor sectors.

Industry analysts note that the minimum import prices, particularly for solar cells and modules, could raise costs for US solar developers at a time when demand for clean energy capacity remains strong. The semiconductor angle adds further complexity, as polysilicon is a foundational input for chip manufacturing, and any disruption in supply chains could ripple through the broader technology sector. The incentives for domestic production may help mitigate some of these pressures over the long term, but the immediate impact will likely be felt by importers and downstream manufacturers adjusting to the new pricing environment.

The Executive Order marks one of the most direct interventions by the US government in the polysilicon market to date, and its effects will be closely watched by both domestic and international stakeholders as the December implementation date approaches.