U.S. to Impose 15% Tariff on Solar Products Containing Polysilicon Starting December 4, 2026

en.Wedoany.com Reported - The Trump administration has released the results of its Section 232 trade investigation into the polysilicon industry. Regardless of country of origin, all imported polysilicon, silicon wafers, solar cells, finished modules, and other solar products containing polysilicon will face an additional 15% tariff, which takes effect 120 days later, on December 4, 2026. The U.S. has also set minimum import prices for polysilicon and its derivative products: $21 per kilogram for polysilicon, $100 per kilogram for ingots and wafers, 22 cents per watt for solar cells, and 38 cents per watt for solar modules.

The U.S. adds approximately 50 gigawatts of new solar capacity on average each year. Domestic solar module assemblers have an annual production capacity of nearly 70 gigawatts, yet still import large volumes of modules due to price considerations. Recent estimates show that the average price of U.S.-assembled modules is 31 cents per watt, compared to 14 cents per watt for India-assembled modules and 27 cents per watt for Southeast Asian modules.

Under Section 232 of the Trade Expansion Act of 1962, the federal government may impose tariffs, implement quotas, or set minimum prices on imported products when they are determined to threaten national security. Polysilicon is the foundational raw material for silicon solar panels and semiconductors. The U.S. government launched a Section 232 investigation into the polysilicon industry in July 2025, and the Department of Commerce subsequently received nearly 50 public comments from parties including domestic solar module manufacturers, polysilicon companies, and industry associations. The Department of Commerce also analyzed U.S. demand for polysilicon and whether domestic production could meet that demand.

The analysis shows that after China imposed high tariffs on U.S.-manufactured polysilicon during the U.S.-China trade war of the 2010s, the market share of U.S. polysilicon producers shrank from $1 billion in 2011 to $107 million in 2018. China has since come to dominate the global market and is currently estimated to hold a 93.5% share. At present, only Hemlock and Wacker produce polysilicon in the U.S., both serving the solar and electronics markets. Non-Chinese companies such as Malaysia's OCI and Wacker's German plant also play a role in the solar industry. Intertek CEA estimates that operable polysilicon capacity outside China stands at just 92,000 metric tons, while China's operable capacity reached 3.25 million metric tons in 2024.

The Trump administration expects that the Section 232 tariffs and minimum import prices will encourage more companies to commit to gigawatt-scale polysilicon projects in the U.S., while supporting continued expansion by existing American manufacturers. Because the tariffs cover all import sources, requests for anti-dumping/countervailing duty (AD/CVD) investigations targeting specific countries dumping cheap solar products into the U.S. market may correspondingly decline.

U.S. domestic manufacturers have previously urged the government multiple times to enforce long-term tariffs on Chinese solar companies, which have been accused of relocating operations to third countries to circumvent duties. Similar tariffs have already been extended to Taiwan, Cambodia, Malaysia, Thailand, and Vietnam; India, Indonesia, and Laos are next on the list, and the U.S. government is also considering launching AD/CVD investigations against Ethiopia and South Korea.

Dan Barcelo, Chairman and CEO of T1 Energy, stated that this is a decisive victory for advanced American manufacturing and investment in the domestic energy supply chain, and most importantly, it helps companies like ours create thousands of high-quality American jobs. The company recently entered the U.S. solar market, operates a module assembly plant in Texas, and is investing $510 million to build a solar cell factory there, with first cells expected in early 2027.

"For the first time, the U.S. has protected the entire solar supply chain with a single action and rewarded manufacturers that build here, while taking an important step toward strengthening the domestic semiconductor supply chain. This is how you bring industry back to America, and it's how you end the endless whack-a-mole game of anti-dumping/countervailing duties that U.S. polysilicon and solar manufacturers have been forced to play for decades," said Jon Toomey, Chairman of the Coalition for a Prosperous America, a domestic manufacturing advocacy group.

Qcells, a subsidiary of Hanwha Solutions, welcomed the Section 232 tariffs. The company is the only U.S. entity poised to bring the full silicon-based solar supply chain—except polysilicon—back onshore, having invested billions of dollars in a facility in Cartersville, Georgia, to manufacture wafers, cells, and modules.

"Today's decision by the White House balances the realities of U.S. solar manufacturing while advancing our collective ambition to reshore the entire supply chain from polysilicon to finished modules. This decision helps support billions of dollars in investment and thousands of jobs at factories across the country, and it lays the groundwork for more investment, more jobs, and more innovation. The demand for reliable, affordable, and secure energy has never been higher, and American solar manufacturers are ready to meet the challenge," said Andy Park, Global CEO of Hanwha Qcells.

President Trump's proclamation also authorizes the U.S. Department of Commerce to develop an incentive program for companies willing to invest in building, expanding, or renovating production facilities for polysilicon and its derivative products.