Trump Readies Tariffs and Price Floors to Bolster US Polysilicon

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(Bloomberg) — President Donald Trump is preparing to impose tariffs and minimum prices on imported polysilicon, a bid to boost domestic production of the material as well as the US semiconductors and solar panels made from it.

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The trade action, which could come as soon as Thursday, was described by people familiar with the matter who requested anonymity to discuss details before they’re announced. 

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In recent days, administration officials have discussed tariffs of at least 15% and a range of minimum import prices that would apply not just to raw polysilicon but various solar-power equipment using it, including wafers, photovoltaic cells and solar modules, according to the people. 

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The planned mix of tariffs and price floors marks Trump’s latest effort to wield levies to spur US manufacturing and diversify supply chains, which China dominates in the solar industry. 

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Administration officials as of Wednesday afternoon were still finalizing details of the proclamation, which is subject to change. 

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The effort comes as Trump is rebuilding his global tariff wall after the Supreme Court struck down his earlier levies imposed under the International Emergency Economic Powers Act. 

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The measures under discussion spring from a Commerce Department investigation launched last year under Section 232 of the Trade Expansion Act, which examined the US’s reliance on foreign supplies of both raw polysilicon and its derivative products. The department is also leading Section 232 probes into imports of drones and industrial machinery, among other products.

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Officials also are planning on implementing a temporary offset program designed to insulate domestic manufacturers currently reliant on imported material from the levies, the people said. 

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Relief would be tied to those manufacturers’ capital investments in the US. The Trump administration adopted a similar approach on pharmaceutical tariffs to reward companies investing in the US, while avoiding immediate price or supply shocks. 

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The refined silicon crystals are widely used in technology that powers modern-day life. Electronics-grade polysilicon serves as an indispensable building block for chips used in products including smartphones, medical equipment, precision-guided weapons and flight-control systems. 

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Solar-grade polysilicon, which is less pure but more common, is the first ingredient in crystalline silicon solar panels used to generate power.

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A White House official said the administration is closely examining domestic production capabilities in sectors critical for national and economic security, but declined to get ahead of the president on the matter. 

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Trump has disparaged solar power and his administration has taken steps to slow such projects. But supporters of tariffs argued that if domestic solar-grade production capacity is restricted, there are consequences for US electronics-grade output too. 

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Current US polysilicon production capacity is limited and companies that stand to benefit include Corning Inc.’s Hemlock Semiconductor and Wacker Chemie AG, which have operations in Michigan and Tennessee.