Key facts
- The U.S. is considering a price floor and tariffs on polysilicon.
- Tariffs on imported solar polysilicon and wafers from China have been doubled to 50%.
- China will extend anti-dumping duties on U.S. and South Korean polysilicon for five years.
- These measures aim to counter China's dominance in the solar and semiconductor supply chains.
- China holds a significant global share of solar-grade polysilicon production.
The U.S. is weighing measures, including a price floor and tariffs, on polysilicon and related products as part of its strategy to compete with China in the solar and semiconductor industries. This move is intended to protect U.S. polysilicon manufacturers like Hemlock Semiconductor and Wacker Chemie from China's expanding presence in the chip supply chain.
In line with this strategy, the U.S. government has doubled Section 301 tariffs on imported solar polysilicon and wafers from China to 50%. This action, announced by the U.S. Trade Representative office, doubles the previous tariff rate on polysilicon and includes wafers on the Section 301 tariff list for the first time. These tariffs build upon a May 2024 decision to double solar cell tariffs to 50%.
The White House stated that the tariff increases are designed to counteract China's policy-driven overcapacity, which depresses prices and hinders solar capacity development outside of China. It was noted that China has employed unfair practices to dominate a substantial portion of the global solar supply chain.
In response, China's Ministry of Commerce announced an extension of its anti-dumping duties on imported solar-grade polysilicon from the U.S. and South Korea for another five years, effective January 14, 2026. This extension is viewed as a retaliatory measure against closer U.S.-South Korea alignment in strategic industries. U.S. suppliers will generally face anti-dumping duties above 50%, with specific rates varying by company.
Experts note that while these tariffs aim to protect domestic industries, they could also create challenges for establishing solar manufacturing in the U.S. if wafer prices from China increase significantly. China currently holds a dominant global share of solar-grade polysilicon production, and setting up robust polysilicon, ingot, and wafering capacity outside of China may prove difficult.