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US sets 15% polysilicon tariff, price floors to challenge China’s dominance

Measures targeting a key material for solar panels and semiconductors add to trade tensions ahead of Xi Jinping’s expected US visit

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The latest move adds to a growing cycle of retaliatory trade and technology measures by the world's two largest economies. Photo: Reuters

Nayan Sethin WashingtonPublished: 6:51am, 7 Aug 2026

The United States has announced new tariffs and price floors on polysilicon and related products, targeting China’s dominance in key materials used in solar panels and semiconductor manufacturing.

In a proclamation signed on Thursday, US President Donald Trump imposed a 15 per cent tariff, which will take effect after 120 days, and established a series of price floors to protect domestic manufacturers and curb imports of China-sourced materials.

“We’re setting prices so that the Chinese can’t dump any more, and we’re setting tariffs to say build it here,” Commerce Secretary Howard Lutnick said.

“We need the foundational products made here. We’re making the products here, but we need the supply chain here.”

According to the proclamation, a minimum import price (MIP) programme would help create a “protected domestic market” that allows US producers to “compete free from global distortions”.

“Without a secure and reliable domestic supply of polysilicon, the United States cannot sufficiently produce semiconductors,” it added.

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