U.S. weighs polysilicon price floor and tariffs to counter China, Reuters reports

The Trump administration is preparing to set a price floor and impose tariffs on polysilicon and related products, according to four people familiar with the plan, Reuters reported. The material is critical to solar panels and semiconductors and sits at the center of U.S. efforts to compete with China on artificial intelligence and energy. The decision is expected later this month and aims to protect U.S. polysilicon factories owned by Hemlock Semiconductor and Wacker Chemie from growing Chinese ambitions in the chip supply chain, the sources said. The plan follows a year-long Commerce Department national security investigation under Section 232 of the Trade Expansion Act. Sources said the administration is expected to pursue a hybrid system combining a minimum import price with tariffs on polysilicon and derivative products. Two sources said importers investing in U.S. wafer and cell production could offset costs tied to the trade protections. China accounts for roughly 80% of global solar manufacturing capacity, Reuters reported. The Semiconductor Industry Association said the chip industry accounts for 2.4% of global polysilicon demand. Industry groups representing solar developers and semiconductor buyers have warned tariffs could raise costs for solar plants and products including consumer electronics and automobiles. China's Embassy in Washington urged the U.S. to stop Section 232 tariff measures and resolve concerns through dialogue.