Trump imposes 15% tariff on polysilicon derivatives, sets minimum import prices

President Donald Trump moved to restrict imports of polysilicon, a critical material for the semiconductor and solar power industries, imposing a 15% tariff on polysilicon derivatives and setting minimum import prices for the raw material and its downstream products to block cheap Chinese goods and strengthen domestic production.

Trump signed a presidential proclamation to that effect on Thursday (local time).

Under the proclamation, a 15% tariff will apply to polysilicon derivatives. "I find it necessary and appropriate to impose a 15% tariff on imports of polysilicon derivatives to ensure that such imports do not threaten to impair the national security of the United States," Trump said.

A minimum import price of $21 per kilogram will apply to raw polysilicon, while polysilicon ingots and wafers will be subject to a minimum import price of $100 per kilogram.

A minimum import price is a system that restricts imports below a set price level. The measure is designed to prevent dumping of cheap Chinese products and protect the domestic production base.

The measures take effect at 12:01 a.m. Eastern time on Dec. 4.

The proclamation drew on the findings of a Section 232 investigation the Commerce Department launched in July last year.

Section 232 of the Trade Expansion Act allows the president to impose tariffs or other import restrictions when a particular product is determined to threaten national security.

"Polysilicon is a foundational material underpinning the security of America's semiconductor and solar power supply chains," Trump said. "This action is intended to rebuild America's polysilicon industry."

Markets view the move as reflecting the Trump administration's broader industrial policy of reducing dependence on China-dominated global polysilicon supply chains and fostering a domestic semiconductor and solar manufacturing ecosystem.

Reuters and Bloomberg had earlier reported that the Trump administration was considering import restrictions on polysilicon. The final proclamation included both the tariff on derivatives and the minimum import price system for the raw material.