President Donald Trump issued an executive order Wednesday to impose a 15% tariff on polysilicon and its derivative products, the next step in the U.S.-China technology wars. The measures, which take effect Dec. 4, also establish minimum import prices for products across the polysilicon supply chain.
The White House said the order is intended to strengthen domestic manufacturing of a material considered critical for semiconductor production and other strategic industries.
The action is based on a year-long national security investigation by the U.S. Department of Commerce pursuant to Section 232 of the Trade Expansion Act of 1962 that permits restrictions on trade in goods that are determined to pose a threat to national security.
New Tariffs Target Chinese Dominance in Polysilicon
The White House says that the executive order imposes a 15% tariff on covered polysilicon products, while it introduces minimum import prices for polysilicon of $21 per kilogram, polysilicon ingots and wafers of $100 per kilogram, solar cells of $0.22 per watt and solar modules of $0.38 per watt.
The administration said the measures are designed to prevent below-market pricing and support U.S. producers of strategic materials.
“The United States must create a level playing field for American producers of these strategic goods” while encouraging domestic production, the White House said in announcing the order.
Commerce Secretary Howard Lutnick said polysilicon is a key raw material used to manufacture silicon wafers that ultimately become semiconductor chips.
“Polysilicon is a basic raw material needed to make the silicon wafers that serve as the raw material for chips used in artificial intelligence chips and mobile phones,” Lutnick said during the Oval Office signing ceremony.
He added that the administration’s approach combines tariffs with minimum pricing to discourage what it describes as unfair trade practices.
“We’re setting prices so that the Chinese can’t dump anymore, and we’re setting tariffs to say build it here,” Lutnick said.
White House Links Move to Semiconductor Security
The White House termed polysilicon an indispensable material used in semiconductor production, a number of which have military applications.
The Semiconductor Industry Association reports that the semiconductor industry used approximately 2.4% of the world’s polysilicon in 2025 and that the solar industry was the largest user in 2025.
Even though the amount of chipped use is limited, the administration emphasized the need to keep getting supplies as the U.S. increases its artificial intelligence and chip manufacturing.
Speaking to reporters, Trump said the policy would help expand domestic chip manufacturing.
“We’re bringing the chips back into the United States in a very big way,” Trump said. He added that the U.S. would have “a big percentage of the chip business” by the end of his presidency.
Chinese companies currently account for approximately 96% of global polysilicon production, according to figures cited by the administration.
Beijing Criticizes New Trade Measures
China criticized the latest restrictions, saying they would disrupt trade between the world’s two largest economies.
The Chinese Embassy in Washington accused the U.S. of “abusing state power to go after Chinese businesses” and said the measures “seriously disrupt” bilateral trade. The embassy added that Beijing would take steps to safeguard the interests of Chinese companies and argued that protectionist policies would not improve U.S. competitiveness.
The announcement comes as both countries continue to impose trade restrictions on strategic technologies. The U.S. has expanded restrictions on imports involving sectors such as drones and robotics, while China recently tightened export controls on drones and announced a national security review of imported printers and copiers.
Tariffs Take Effect in December
The tariffs and minimum import prices are scheduled to take effect Dec. 4.
A White House official described the order as part of a broader package of Section 232 trade measures intended to support the domestic polysilicon industry and protect it against foreign dumping.
The latest action continues the Trump administration’s broader strategy of reducing U.S. reliance on Chinese-controlled supply chains for critical materials used in semiconductor manufacturing and other strategic industries.
