Trump unveils trade actions to protect key solar and semiconductor material
White House Announces Tariffs and Price Floors on Polysilicon Products
By Nichola Groom and Alexandra Alper
WASHINGTON, Aug 6 (Reuters) - The White House on Thursday imposed a series of price floors and a 15% tariff on products made from polysilicon, the raw material used in semiconductors and solar panels.
Background and Rationale for Trade Actions
The proclamation under Section 232 of the Trade Expansion Act of 1962 by U.S. President Donald Trump is aimed at protecting domestic polysilicon makers from Chinese competition.
Importance of Polysilicon in Manufacturing
Polysilicon, an ultra-pure form of silicon, sits at the start of the semiconductor and solar manufacturing supply chains. Manufacturers turn silicon wafers into solar cells and then assemble those into panels used in solar projects.
Implementation Timeline
The trade protections will take effect on December 4, the White House said.
Details of the Trade Protections
Minimum Import Prices and Tariffs
According to a White House document, the president set minimum import prices of $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells and $0.38 per watt for solar modules, or panels.
Incentive Program for Domestic Production
The proclamation also authorizes the Commerce Department to create an incentive program for companies that invest in factories to produce polysilicon or derivative products.
Hybrid System of Trade Protections
The administration's plan to pursue a hybrid system combining a minimum import price with tariffs was first reported by Reuters.
(Reporting by Jacob Bogage and Alexandra Alper in Washington; Writing by Jasper Ward; Editing by David Ljunggren, Daniel Wallis and Nia Williams)