U.S. President Donald Trump on the 6th (local time) signed an executive order to protect the polysilicon industry, a key raw material for semiconductors, and imposed tariffs on polysilicon derivative products.
According to Reuters and others, President Trump on this day signed an executive order to expand U.S. production of polysilicon. The White House said, "This is a series of trade and tariff measures under Section 232 of the Trade Expansion Act."
Section 232 of the Trade Expansion Act allows the president to restrict imports through appropriate measures, such as imposing tariffs, if the import of specific items is deemed to threaten national security.
The White House said Trump also signed a presidential proclamation limiting imports of polysilicon and its derivatives. Under the measure, the United States will apply a minimum import price of $21 per kg (about 29,900 won) for polysilicon and $100 per kg (about 142,300 won) for polysilicon ingots and wafers.
The new price floor will apply starting 12:01 a.m. on Dec. 4, Eastern time, 120 days later, to products brought in for consumption in the United States or withdrawn from bonded warehouses. If the declared price is lower than the minimum import price, the importer must pay a tariff equal to the difference.
Designated polysilicon derivative products such as ingots are additionally subject to a 15% ad valorem tariff. However, raw polysilicon is subject to the minimum import price but is excluded from the 15% ad valorem tariff.
Products from Korea, Japan, Taiwan, the European Union (EU), Switzerland and Liechtenstein will face a total rate of 15% when combining existing normal tariffs and the new Section 232 tariff. Products from the United Kingdom will face a 10% rate.
If an importer fails to submit price-related evidence or submits false documents, a tariff equal to the product's minimum import price will be imposed. If a material false declaration is confirmed, the company and its affiliates may be permanently banned from importing into the United States.
Instead, corporations that commit to invest in production facilities in the United States will receive tariff exemptions. If a corporation submits a plan to the authorities and obtains approval to start building or expanding facilities in the United States for the production of polysilicon, ingots, wafers, and solar cells by Jan. 20, 2029, it can import production equipment and related materials tariff-free depending on the investment size and construction progress.
The move is seen as an effort to protect domestic industry from low-priced competition from China. In the proclamation, Trump said, "Polysilicon is a key material that supports the security of the United States' semiconductor and solar power supply chains," adding, "But for decades, the United States has allowed foreign corporations to undermine U.S. producers in the field of polysilicon, and this has threatened the U.S. economy and national security."