The White House on Thursday imposed a series of price floors and a 15-percent tariff on products made from polysilicon – the raw material used in semiconductors and solar panels that is primarily produced by China.

US President Donald Trump's proclamation under Section 232 of the Trade Expansion Act of 1962 is aimed at supporting domestic chip and solar supply chains needed to compete with Beijing on artificial intelligence and energy.

The aim is "to create a level playing field for American producers of these strategic goods," and to "encourage onshoring of these industries," the White House said in a fact sheet.

Polysilicon, an ultra-pure form of silicon, sits at the start of the semiconductor and solar manufacturing supply chains. Manufacturers turn silicon wafers into solar cells and then assemble those into panels used in solar projects.

The move comes after a year-long Commerce Department probe on imports of the material, which US Commerce Secretary Howard Lutnick called a "foundational product" going into chips.

"We're making the products here, but we need the supply chain here. So this will bring the supply chain here," Lutnick told reporters at the White House on Thursday.

"We're setting prices so that the Chinese can't dump anymore, and we're setting tariffs to say build it here. We've got the industry here; it's too small, and it's going to explode under your leadership," he added, referring to Trump.

American solar factories for the last decade have accused their Chinese rivals of dumping solar panels in the market – though Beijing has long dismissed western claims of “overcapacity.”

The Commerce Department launched an investigation in July 2025 on polysilicon imports, under Section 232 of the Trade Expansion Act of 1962.

This was the same authority that Trump previously used to slap steep tariffs on imports of steel, aluminum, autos and other products.

Thursday's announcement marks the latest salvo by Trump, who has slapped sweeping tariffs on US trading partners since returning to the White House last year.

While a wide range of these duties were struck down by the US Supreme Court in February, his sector-specific tariffs justified by Section 232 investigations remain intact. (Agencies)



Edited by Cecil Wong