Seoul: The United States has announced new tariffs and price floors on polysilicon and related products, which are key materials used in solar panels and semiconductor manufacturing. In a proclamation signed on Thursday, US President Donald Trump imposed a 15% tariff, which will take effect on 4 December, and established a series of price floors to protect domestic manufacturers and curb imports.

According to Emirates News Agency, the proclamation outlines that a minimum import price (MIP) programme would help create a 'protected domestic market' that allows US producers to 'compete free from global distortions'. This strategic move is aimed at supporting the dwindling domestic polysilicon industry, which has seen a dramatic decline in global production capacity share.

The action follows a Commerce Department national security investigation into imports of polysilicon and its derivative products. The investigation highlighted the need for protective measures to ensure the stability and growth of the domestic industry, which is pivotal for the semiconductor and solar panel sectors.

Polysilicon, a hyper-pure form of silicon derived from quartz, serves as the essential foundational material for both semiconductor and solar panel sectors. The tariff and pricing measures are expected to bolster the US polysilicon industry, encouraging domestic production and reducing reliance on foreign imports.

By contrast, the US share of global polysilicon production capacity has fallen from 50% in 2005 to less than 2% over the same period. This stark decline underscores the urgent need for policy interventions to revitalize the sector and secure its strategic importance in the global market.