US President Donald Trump has signed an executive order imposing a 15% tariff on imported products made from polysilicon, a vital material used in semiconductors and solar panels. The order, issued on Thursday, also established minimum import prices for polysilicon and related products. This measure follows a national security investigation into overseas production of the material.
The tariffs are designed to safeguard US manufacturers facing intense competition from China's chip industry. This competition has been a significant point of contention between the world's two largest economies. The new tariffs are expected to take effect in December and are accompanied by incentives to boost domestic production of polysilicon.
This action fits into a broader US strategy to reduce its reliance on foreign supply chains for critical technologies. The US has seen its share of global polysilicon production plummet from 50% in 2005 to less than 2% in 2024. China currently holds a near-monopoly on polysilicon production, making the US vulnerable in a sector crucial for military equipment and electronics.
The Chinese embassy in Washington stated that the move "seriously disrupts" trade relations between the two countries. Beijing has vowed to act to protect its companies, accusing Washington of "abusing state power to go after Chinese businesses." The embassy also asserted that protectionism would not enhance US competitiveness.
The order specifically accepted recommendations from Secretary of Commerce Howard Lutnick to implement these tariffs and minimum import prices. This decision reflects President Trump's long-standing advocacy for using tariffs to protect American jobs and stimulate the economy. The tariffs are likely to benefit US-based producers such as Hemlock Semiconductor and Wacker Chemie.
The production of computer chips is central to the ongoing technological race between the US and China, particularly in the development of artificial intelligence (AI). This new tariff marks an escalation in Washington's efforts to limit China's role in critical technology supply chains. It follows previous US restrictions on imports of drones, humanoid robots, and other tech products from China.
Analysts quoted by Chinese state media outlet Global Times view the new tariff as the latest development in the trade tensions. The US and China had previously engaged in a tit-for-tat tariff war, which had been on hold since May 2025. China has already announced countermeasures this week, including tighter export controls on drones and a national security review into imported printers and copiers. These actions highlight the ongoing economic and technological rivalry between the two global powers.