US Imposes Trade Measures on Solar Polysilicon to Boost Domestic Manufacturing
On August 6, the U.S. President issued an executive order targeting a key material for solar energy and semiconductors. Leveraging Section 232 of the Trade Expansion Act of 1962, the order introduces a dual approach of minimum import prices and additional tariffs on imported polysilicon and its downstream products. The stated objective is to strengthen the resilience of domestic supply chains for polysilicon, semiconductors, and solar manufacturing.
The Policy Details: Price Floors and Added Tariffs
The policy establishes specific minimum import prices for the following products:
- Polysilicon: $21 per kilogram
- Polysilicon ingots and wafers: $100 per kilogram
- Solar cells: $0.22 per watt
- Solar modules: $0.38 per watt
In addition, a 15% ad valorem tariff will be applied to polysilicon ingots and certain derivatives listed in the order's annex. These measures are scheduled to take effect at 12:01 a.m. Eastern Time on December 4, 2026.
Incentive Program: Tariff Waivers to Spur Domestic Investment
Alongside the trade restrictions, the order includes a proactive incentive. The U.S. Department of Commerce is directed to create a "Return to America" program. Companies that commit to building, renovating, or expanding production facilities for polysilicon, ingots, wafers, or solar cells within the United States, and begin construction by January 20, 2029, may apply for exemptions from the Section 232 tariffs on certain imported equipment and related products.
This combined strategy of tariffs and incentives signals a clear intent to use trade policy to redirect global investment in solar manufacturing capacity back to U.S. soil.