Trump imposes 15% tariff on key chip material to counter China
Summary
President Donald Trump signed an order to impose a 15% tariff and set minimum prices on imported polysilicon, a key material for making chips and solar panels. This action aims to protect U.S. manufacturers from competition, especially from China, which dominates polysilicon production.Key Facts
- Polysilicon is essential for semiconductors and solar panels.
- The U.S. share of global polysilicon production dropped from 50% in 2005 to less than 2% in 2024.
- China is the largest producer of polysilicon worldwide and controls most of the market.
- The tariff and price controls will start in December.
- The U.S. plans to support its domestic polysilicon producers like Hemlock Semiconductor and Wacker Chemie.
- The move follows a national security investigation into foreign production of polysilicon.
- The Chinese embassy criticized the tariffs, saying they harm trade and accuse the U.S. of protectionism.
- This is part of broader U.S. efforts to limit China’s role in advanced technology supply chains, including chips and AI development.
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