Solar and semiconductors: The United States wants to tax polycrystalline silicon in the face of Chinese dominance

Donald Trump has signed an executive order imposing tariffs on polycrystalline silicon and its derivatives, including photovoltaic cells and solar modules. The details of these new tariffs, intended to encourage the relocation of production to the United States in the face of Chinese dominance, have not yet been made public.

The United States is preparing new tariffs on polycrystalline silicon, a material essential for manufacturing semiconductors, photovoltaic cells, and solar panels. However, the executive order signed by Donald Trump has not yet been published, and the amount of the proposed tariffs has not been officially disclosed.

According to the American press, the government is considering applying tariffs of at least 15% and establishing a floor price on polycrystalline silicon and its derivative products, including photovoltaic cells and modules.

The implementation of these measures has reportedly been delayed. However, the US government has not confirmed this information.

A measure justified by national security

The US government had opened an investigation a year earlier based on a 1962 law. This law allows it to protect a sector of activity when it believes that its dependence on foreign countries presents a risk to national security.

Donald Trump has already used this provision to impose sectoral tariffs targeting, in particular, steel, aluminum, copper and construction timber.

"The goal is to relocate industrial capacity and our supply of essential products, as well as to protect American industry from dangerous foreign actors," explained US Commerce Secretary Howard Lutnick at the White House.

“We manufacture the products here, but we also need to bring the supply chain in. We are implementing tariffs to send a signal to build here. Our industry in this area is too limited.” Howard Lutnick added.

Chinese industrial dominance directly targeted

The US president explicitly designated Chinese industry as the primary target of this trade policy.

"We are imposing a (floor) price so that the Chinese cannot undercut prices," Donald Trump said.

China accounted for more than 90% of global polycrystalline silicon production in 2024, according to the specialist firm Thunder Said Energy.

A significant portion of this production is believed to originate from China's Xinjiang region. Beijing is accused of having interned more than a million members of the Uyghur Muslim minority there in recent years, a claim denied by Chinese authorities.