U.S. Imposes 15% Tariff on 'Polysilicon'... Korean Government Aims to Minimize Industry Impact

Government: "Position Statement Submitted Last August... Close Coordination with Ministries and Industry"

The U.S. government has initiated trade and tariff measures based on Section 232 of the Trade Expansion Act to expand domestic production of polysilicon, a key semiconductor material, prompting the Korean government to begin assessing the potential impact on local industries.

According to the Ministry of Trade, Industry and Energy on August 7, the Korean government is closely reviewing the content of a polysilicon-related proclamation signed by U.S. President Donald Trump on August 6 (local time).

An official from the ministry stated, “Regarding the Section 232 investigation into polysilicon, the Korean government has actively engaged with the process, including the submission of a position statement last August. Based on a thorough review of this latest proclamation, we plan to respond in close coordination with relevant ministries and the domestic industry to minimize any impact.”

On this day, President Trump signed a proclamation to impose a 15% tariff on foreign-made polysilicon derivative products and to set a minimum import price for polysilicon as well as for ingots and wafers. The White House explained that these measures are part of a series of trade and tariff actions founded on Section 232 of the Trade Expansion Act.

U.S. Secretary of Commerce Howard Lutnick also emphasized that polysilicon is an essential raw material for producing silicon wafers, which are used in semiconductors for AI chips, mobile phones, and other devices. He announced the intention to increase polysilicon production within the United States through these measures.

Section 232 of the Trade Expansion Act allows the president to impose tariffs, restrict imports, or undertake other actions if imports of particular items are deemed to threaten U.S. national security. The Trump administration has previously used this provision as a tool for strengthening trade barriers in key industries such as steel and aluminum.

The U.S. Department of Commerce had already been investigating the impact of polysilicon and its derivative imports on national security under Section 232. In response, the Korean government submitted an official position statement to U.S. authorities last August and engaged with the investigation process.

The main issue now lies with the specific import restriction measures stipulated in the proclamation. Although the possibility of additional tariffs on imported polysilicon had been raised earlier, as of now, details regarding tariff rates and applicability have not been disclosed.

In particular, as polysilicon is a core material widely used for both semiconductors and solar panels, the impact on Korean companies will vary depending on how the U.S. government determines the scope of targets, tariff rates, and potential exemptions by country.

This content was produced with the assistance of AI translation services.