US set to impose 15% tariff on polysilicon as early as Thursday, targeting China's solar supply chain

The Trump administration is expected to announce a tariff of at least 15 percent on imported polysilicon as early as Thursday, according to reports. The move aims to curb imports of the material — a key input for both solar panels and semiconductors — to strengthen US manufacturing and reduce China's grip on the supply chain.

Reuters and Bloomberg reported Wednesday, citing multiple sources, that the Trump administration plans to release the findings of its Section 232 investigation into polysilicon as early as Thursday.

The US is considering imposing a minimum 15 percent tariff on imported polysilicon and derivative products. Officials are also discussing a minimum import price mechanism covering not only raw polysilicon but also wafers, solar cells and solar modules.

Section 232 of the Trade Expansion Act allows the president to impose tariffs or other import restrictions when a particular product is deemed a threat to national security. The US has been conducting a probe into polysilicon imports since last year.

The Trump administration has argued that Chinese overproduction and aggressive low-price competition have eroded the competitiveness of the US solar materials industry. American industry groups have long contended that steep tariffs on Chinese-made or Chinese-linked products are necessary to sustain domestic production capacity.

However, relief measures are also expected to ease the burden on US manufacturers that rely on imported raw materials.

Bloomberg reported that the US government is considering a temporary offset program that would reduce tariff obligations for companies that have made significant investments in domestic production facilities. The specific terms of the relief are expected to be disclosed through a presidential proclamation.

The measures are also seen as part of a broader US strategy to restructure its solar supply chain. Over the past decade or so, the US has pursued domestic production expansion through a combination of tariffs and support policies targeting Chinese solar products and raw materials.

South Korean companies could also be affected. However, firms operating or investing in US production facilities may receive exemptions or more flexible treatment. The South Korean government and companies have previously urged Washington to consider their contributions to the US supply chain.

Industry watchers say the key details to watch in the announcement will be the final tariff rate, the scope of the minimum import price mechanism, and whether exemptions will be granted to companies with US investments.