The renewable energy sector faces fresh headwinds as President Donald Trump signed an executive order on Thursday imposing a 15% tariff on imported polysilicon and its derivatives, the latest move in his administration's campaign to strip China of chokepoints in the global chip and solar supply chain.
The order also sets minimum import prices on polysilicon, ingots, wafers, solar cells and modules, alongside a clause meant to stop companies stockpiling material before the rules bite.
Commerce Secretary Howard Lutnick, appearing alongside Trump at the White House, said the measure would draw manufacturing back to American soil: "This will bring the supply chain here".
The tariff will not take effect until December 4, a delay that pushes the impact past November's midterm elections and a planned September summit between Trump and Chinese leader Xi Jinping, as the administration navigates voter anger over prices and fragile trade talks with Beijing.
Chinese companies control roughly 96% of global polysilicon production, a material that feeds not just solar panels but semiconductors used in military hardware, phones and laptops, according to the Semiconductor Industry Association, though chips account for only 2.4% of annual polysilicon demand.
Firms that commit to building manufacturing facilities in the US can apply for exemptions from the levies, according to the proclamation.
The Chinese embassy in Washington said the move "seriously disrupts" bilateral trade and that Beijing would act to protect its companies, accusing Washington of "abusing state power to go after Chinese businesses."
