Trump hits polysilicon with 15% tariff to counter China
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- Trump signed an executive order Thursday imposing a 15% tariff on polysilicon imports plus minimum import prices, set to take effect in December after a national security investigation.
- Polysilicon imports contributed to the US share of global production collapsing from 50% in 2005 to under 2% in 2024, according to Trump's order.
- China holds a near monopoly on polysilicon production, and its embassy in Washington called the tariff an abuse of state power that "seriously disrupts" bilateral trade.
- Hemlock Semiconductor and Wacker Chemie, the main US polysilicon producers, are positioned to benefit from the tariff, alongside new US incentives for domestic production.
- The tariff lands in a US-China tech supply chain fight that includes prior US restrictions on Chinese drones and humanoid robots, with the broader tit-for-tat tariff war on hold since May 2025.
- China preemptively countered this week with tighter export controls on drones and a national security review into imported printers and copiers.
Why it matters: The tariff directly targets China's near-monopoly on a material critical to semiconductors and military electronics, with US share of global production already at under 2% from 50% in 2005. China has already fired back this week with drone export controls and a printer security probe, meaning a trade war on hold since May 2025 is now re-opening on a new front.
