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U.S. Plans Price Floor and Tariffs on Polysilicon

Protecting U.S. polysilicon makers, the plan would raise import costs through a minimum price and tariffs while offering offsets to importers that invest in domestic wafer and cell plants.

Overview

  • Multiple news reports say the administration is preparing a hybrid policy that sets a minimum import price and levies tariffs on polysilicon and related products to shield U.S. producers.
  • The measure would rely on Section 232, the national-security trade authority the president has used before to restrict imports of steel, autos and semiconductors.
  • Two sources report importers could reduce the added cost if they invest in U.S. wafer or solar cell capacity, a carve-out meant to steer manufacturing and investment onshore.
  • China’s embassy in Washington has publicly objected to the probe and urged dialogue, and industry data show China supplies the large majority of global solar-making capacity, raising risk of trade and diplomatic friction.
  • Experts warn higher polysilicon costs would raise solar panel prices and slow some projects, while the White House and Commerce Department have declined to comment and legal challenges are possible.