On Thursday, August 6, 2026, the Trump administration announced it will impose a 15% tariff and a minimum price on imports of polysilicon products. Polysilicon is a critical raw material used primarily in solar panels and semiconductor chips. Chinese companies currently hold 96% of the global production of this key material.

According to the Semiconductor Industry Association, the solar industry is the main consumer of polysilicon, while semiconductor chips accounted for 2.4% of annual polysilicon consumption in 2025. This move is seen as a pushback against China’s dominance in the polysilicon market.

The tariff aims to protect US industries and reduce reliance on imports from China, which has a significant hold on the supply chain for both solar energy and semiconductor manufacturing.

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