US raises polysilicon tariff to challenge China market strength

The policy aimed to protect domestic manufacturers facing rising competition from China’s expanding chip sector. The material plays a central role in semiconductors and solar panels, making it vital for both commercial and strategic industries. The order also included incentives to support increased production within the United States.

The Chinese Embassy in Washington stated that the move disrupted trade relations and signalled that countermeasures would follow to protect Chinese companies. The embassy added that such protectionist steps would not improve US competitiveness.

The United States has seen a sharp decline in its share of global polysilicon production. Data cited in the order showed a drop from 50 percent in 2005 to less than 2 percent in 2024. China now holds a dominant position in global supply.

The administration indicated that foreign competition weakened domestic producers over several decades, creating a need for corrective trade measures. The policy aims to rebuild local capacity and strengthen the country’s position in the global supply chain.

The decision is expected to benefit major US-based producers such as Hemlock Semiconductor and Wacker Chemie. Industry observers have noted that tighter import rules could stabilise local production while increasing costs for downstream sectors.

The move formed part of a broader economic strategy linked to technology competition between the United States and China. Semiconductor production remains central to the race for leadership in artificial intelligence. Trade disputes between the two economies have included tariffs and restrictions on a range of advanced technologies.

The authorities introduced tighter export controls on drones and launched a national security review into imported printers and copiers. These actions reflect ongoing friction that continues to shape global trade flows and technology supply chains.