US Imposes 15 Percent Tariff on Polysilicon Derivatives from December 2026
The US has imposed a 15 percent additional tariff on polysilicon derivatives, alongside minimum import prices of USD 21/kg for polysilicon, USD 100/kg for ingots and wafers, USD 0.22/W for solar cells and USD 0.38/W for modules, effective December 4, 2026.
August 11, 2026. By Mrinmoy Dey
The proclamation, issued by President Donald Trump under Section 232 of the Trade Expansion Act of 1962, states that imports of polysilicon and its derivative products are being made in quantities and under circumstances that threaten to impair US national security. The action follows a Commerce Department investigation into the impact of these imports on the US polysilicon industry.
Under the new framework, the US will establish MIPs of USD 21 per kilogram for polysilicon, USD 100 per kilogram for polysilicon ingots and wafers, USD 0.22 per watt for solar cells and USD 0.38 per watt for solar modules. The Commerce Secretary has been authorised to adjust these minimum prices periodically to reflect market conditions and the fair market value of covered products under non-distorted, free-market conditions.
The MIP regime will apply to goods entered for consumption, or withdrawn from warehouses for consumption, from December 4, 2026. Importers will be required to submit documentation to US Customs and Border Protection (CBP) showing that the first arm's-length sale of the imported product, or relevant downstream product, will take place at or above the applicable MIP, or that the transaction is covered by a qualifying pre-existing contract. Where an importer does not submit the required documentation, the imported merchandise will face a specific tariff equal to the applicable MIP. Where documentation is submitted but the entered value is below the MIP, the tariff will equal the difference between the entered value and the applicable minimum price, noted the order.
In addition to the MIP mechanism, the proclamation imposes an additional 15 percent ad valorem duty on covered polysilicon ingots, wafers and downstream polysilicon derivatives from December 4, 2026, subject to country-specific provisions. For products from Japan, South Korea, Taiwan, Switzerland, Liechtenstein and the European Union, the proclamation specifies that the combined Section 232 tariff and the applicable Column 1 duty rate will equal 15 percent. For products from the United Kingdom, the applicable additional rate under the proclamation will be 10 percent.
The proclamation also introduces an investment incentive mechanism aimed at encouraging domestic manufacturing. The Commerce Secretary is authorised to establish a programme under which companies can submit onshoring plans covering the construction, refurbishment or expansion of US facilities producing polysilicon, ingots, wafers and cells. Approved plans must include a commitment to begin construction by January 20, 2029. Companies with approved onshoring plans may be permitted to import necessary production equipment and covered products without paying applicable Section 232 duties during the construction period. The tariff benefits can be withdrawn if companies substantially fail to meet their commitments.
The proclamation cites the erosion of the US polysilicon manufacturing base as a key reason for the measures. According to the Commerce Department findings referenced in the document, the US share of global polysilicon production capacity declined from 50 percent in 2005 to less than 2 percent in 2024. During the same period, the US share of global semiconductor wafer fabrication capacity fell from 37 percent in 1990 to 10 percent in 2024, while the US solar sector became virtually entirely dependent on imports of solar ingots, wafers and cells. The document also states that global polysilicon production has increased by more than 270 percent since 2020, while inventories reached a record 400,000 tonnes by the end of 2024.
The administration also links the viability of the US polysilicon industry to solar-grade polysilicon, noting that semiconductor-grade polysilicon accounts for only 2.4 percent of global polysilicon production. According to the proclamation, the much larger solar-grade market is necessary for polysilicon manufacturers to achieve the production volumes required to sustain viable unit costs across polysilicon production, including semiconductor-grade material.
The new measures cover multiple stages of the solar manufacturing chain. In addition to the stated MIPs, the corresponding provisions incorporated into the US Harmonized Tariff Schedule provide for specific additional duties of USD 21/kg for polysilicon, USD 100/kg for ingots and wafers, USD 0.22/W for solar cells and USD 0.38/W for solar modules where the applicable conditions are met.
CBP will monitor importer documentation and compliance with the MIP framework. If CBP determines that an importer has materially submitted inaccurate documentation or failed to comply with certification requirements, the importer and its affiliates can be permanently prohibited from importing polysilicon and its derivatives into the US, in addition to potential penalties under applicable law. The Commerce Secretary is also directed to monitor imports for potential stockpiling ahead of the December 4 effective date and may coordinate with CBP to restrict imports by companies found to be stockpiling polysilicon or its derivatives, noted the order.
The proclamation also provides for manufacturing drawback claims for qualifying products from designated trade agreement partner countries, provided the polysilicon content is entirely sourced from a qualifying partner country. The listed partners include the UK, European Union, Japan, South Korea, Switzerland, Liechtenstein, Mexico and Canada, as well as countries with which the US concludes a trade and security agreement.
please contact: contact@energetica-india.net.
Deepak Thakur
MD & CEO
Hinduja Renewables MD Deepak Thakur Says RTC and Storage Will Shape India’s Clean Energy Future
Ashish Kauleshnam
Associate Director & Vertical Head - Automotive Design, Engineering & Manufacturing
Ashish Kauleshnam, Tata Elxsi on How AI, Digital Engineering, Advancing Sustainable Mobility
Avinash Hiranandani
Vice Chairman and MD
Continuous Innovation is Fundamental to RenewSys’ Growth Strategy: Avinash Hiranandani
Sanjeev Aggarwal
Founder and Executive Chairman
Tie ALMM Implementation to Domestic Capacity, Not Calendar Deadlines: Sanjeev Aggarwal
Archana Bhatnagar
Director, Market and Project Development, South Asia
Renewables Will Become the Backbone of India’s Grid, Says Wärtsilä’s Archana Bhatnagar