Trump Targets Polysilicon, Elevating US–China Tech Clash
On Thursday, President Donald Trump signed an executive order to impose a 15% tariff on all imported polysilicon and related products, a material indispensable for manufacturing semiconductors and solar panels. The measure, taking effect in December, also sets minimum import prices for the material, following a national‑security investigation of overseas polysilicon production.
Trump’s policy is part of a larger strategy to protect U.S. chipmakers facing mounting competition from China’s semiconductor giants, a friction point between the world’s two largest economies. The Chinese embassy in Washington warned that the tariff would "seriously disrupt" bilateral trade, accusing the U.S. of wielding state power to target Chinese firms and claiming that protectionism would not boost U.S. competitiveness.
Trump cited a long‑standing decline in American polysilicon output—from about 50% of global production in 2005 to less than 2% in 2024—as justification for the tariff, noting that China currently enjoys a near‑monopoly in the market. The order should benefit U.S. producers such as Hemlock Semiconductor and Wacker Chemie, which supply the raw material domestically.
Polysilicon is a key component in weapons systems, military electronics and the rush to develop artificial intelligence. The tariff underscores the intensifying "race between the US and China" to dominate critical technology supply chains, a struggle that has been on hold since May 2025 but has now gained new momentum. Analysts from Chinese state media identify the tariff as part of Washington’s effort to limit China’s role in essential tech sectors.
In addition to the polysilicon tariff, the U.S. has imposed restrictions on Chinese drones, humanoid robots and printers, while China responds with tighter export controls, especially on drones and a national security review of imported printers and copiers. The back‑and‑forth measures mark another escalation in a trade war that could reshape global supply chains and technological leadership.
