Trump Signs 15% Tariff on Polysilicon Imports... Korean Firms "Welcome" (Comprehensive)

Total Tariff for Korean Products Capped at 15%
Effective from December 4, Eastern Standard Time

U.S. President Donald Trump signed a proclamation on the 6th (local time) to impose a 15% tariff on foreign-made polysilicon derivatives and to apply a Minimum Import Price (MIP) to polysilicon, ingots, and wafers. This measure is intended to reduce the United States' reliance on imports for polysilicon, a key material for the semiconductor and solar industries, and to expand domestic production capacity.

U.S. President Donald Trump is showing the proclamation signed on the 6th (local time) in the Oval Office at the White House, which imposes a 15% tariff on polysilicon derivative products, the key raw materials for solar power and semiconductors. Photo by AP Yonhap News

According to the proclamation, the MIP for polysilicon will be set at $21 per kilogram. For ingots and wafers, which are cylindrical forms of processed polysilicon, the MIP will be $100 per kilogram. For solar cells, it is set at $0.22 per watt, and for solar modules, $0.38 per watt will be applied as the MIP.

The proclamation states, "An additional 15% tariff will be imposed on imports of polysilicon ingots and derivatives," and clarifies that the 'MIP or the additional 15% tariff' is to be imposed on top of any other existing duties, taxes, charges, and levies applicable to these products. This is interpreted as the U.S. government’s intention to impose an extra 15% tariff on top of existing high tariffs previously imposed on polysilicon derivatives produced in China or rerouted through certain Southeast Asian countries identified as indirect export channels for China. For products originating from South Korea, Japan, Taiwan, the European Union (EU), Switzerland, and Liechtenstein, the combined tariff rate for both regular duties and this new Section 232 tariff will be capped at a total of 15%. A 10% tariff will apply to products from the United Kingdom.

This proclamation was issued under Section 232 of the Trade Expansion Act, which grants the president authority to restrict imports via tariffs or other measures when imports of specific items are deemed to threaten national security. In relation to this, the U.S. Department of Commerce began an investigation into polysilicon imports in July of last year.

President Trump stated, "Polysilicon is a foundational material that underpins the security of U.S. semiconductor and solar power supply chains," and explained that this measure aims to rebuild America’s polysilicon industry. The new rules will take effect 120 days later, starting at 12:01 a.m. Eastern Standard Time on December 4.

Korean companies are also closely monitoring the scope of these measures and possible exemptions. In a statement to the U.S. Department of Commerce last August, the Korean government requested a flexible application of restrictions on imports of polysilicon and its derivatives, noting that Korean businesses are investing in the U.S. solar and semiconductor sectors.

Hanwha Q CELLS welcomed the decision. According to The New York Times (NYT), Andy Park, Global CEO of Hanwha Q CELLS, said, "Today’s decision at the White House strikes a balance by reflecting the realities of U.S. solar energy manufacturing and advancing our shared goal of relocating the entire supply chain, from polysilicon to finished panels, within the United States."

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