Trump unveils trade actions to protect key solar and semiconductor material

The White House has imposed a 15% tariff and price floors on Chinese polysilicon products to protect domestic manufacturers from Chinese competition, effective December 4.

​The White House on ‌Thursday imposed ​a series of price floors and a 15% tariff on products made from polysilicon, the ‌raw material used in semiconductors and solar panels. The proclamation under Section 232 of the Trade Expansion Act of 1962 by U.S. President Donald ‌Trump is aimed at protecting domestic polysilicon makers from Chinese competition.

Polysilicon, ‌an ultra-pure form of silicon, sits at the start of the semiconductor and solar manufacturing supply chains. Manufacturers turn silicon wafers into solar cells and then assemble ⁠those ​into panels used ⁠in solar projects. The trade protections will take effect on December 4, the White ⁠House said.

According to a White House document, the president set minimum import ​prices of $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots ⁠and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules, or ⁠panels. The ​proclamation also authorizes the Commerce Department to create an incentive program for companies that invest in factories to produce polysilicon ⁠or derivative products.

The administration's plan to pursue a hybrid system combining a ⁠minimum import ⁠price with tariffs was first reported by Reuters.