Overview
- President Donald Trump signed the proclamation on Aug. 6, directing a Section 232 package meant to protect U.S. polysilicon capacity and related supply chains.
- The measures establish a 15 percent ad valorem tariff on polysilicon derivatives and specific minimum import prices, with examples set at $21 per kg for polysilicon, $100 per kg for ingots and wafers, $0.22 per watt for cells, and $0.38 per watt for modules.
- The remedies will take effect 120 days after signing, on Dec. 4, 2026, and the order authorizes Customs to act if it finds importers are attempting to stockpile supplies to avoid the duties.
- U.S. producers such as Hemlock and Wacker stand to gain price protection, while solar manufacturers and foreign suppliers including Korean and Southeast Asian firms face higher input costs and lost price competition; vertically integrated firms with U.S. plants like Hanwha Qcells will be relatively insulated.
- The Commerce Department is authorized to run an investment incentive program to attract domestic polysilicon capacity, and the policy risks diplomatic friction, possible circumvention by suppliers, and higher costs for U.S. solar projects that policymakers will need to monitor.