Trump orders new 15% tariff on key material for solar panels and microchips
Summary
President Donald Trump has ordered a 15% tariff on imported polysilicon, a key material used to make microchips and solar panels, starting December 4. The goal is to help US producers compete with China and strengthen US supply chains for technology and clean energy products.Key Facts
- Polysilicon is a very pure form of silicon used to make semiconductors for AI, data centers, and solar panels.
- The US has two main polysilicon factories: Hemlock Semiconductor in Michigan and Wacker Chemie in Tennessee.
- The tariff sets minimum prices for polysilicon and related solar products to support US industry.
- The Commerce Department may offer incentives to companies investing in polysilicon production in the US.
- China criticizes the tariff as unfair protectionism that harms US and Chinese businesses.
- US solar factories accuse Chinese rivals of selling cheap panels to undercut competition, helped by government subsidies.
- China’s exports, especially of AI-related products, grew strongly despite rising trade tensions.
- Experts say China’s strength in electronics and AI hardware will likely help it keep growing its global market share.
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