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Trump Imposes 15% Tariff on Key Chip Material to Counter China

Trump Imposes 15% Tariff on Key Chip Material to Counter China

by | Aug 8, 2026 | Business & Economy | 0 comments

US President Donald Trump has imposed a 15% tariff on imported products made from polysilicon, a critical material used in the production of semiconductors and solar panels.

The new tariff was introduced through an executive order signed by Trump on Thursday as Washington seeks to protect US manufacturers from growing competition from China.

New Tariffs Target Polysilicon Imports

The executive order applies a 15% tariff to imported polysilicon and certain related products.

It also establishes minimum import prices for polysilicon and associated materials.

The measures follow a US national security investigation into the overseas production of the material.

Polysilicon is particularly important to both the semiconductor and renewable energy industries, making it a strategically significant part of global supply chains.

US Seeks to Protect Domestic Industry

The Trump administration says the measures are intended to strengthen American manufacturing and reduce the country’s dependence on foreign suppliers.

China has become a major force in the global technology and solar supply chains, increasing competition for US companies.

The latest action adds another point of tension between Washington and Beijing as both countries seek greater control over strategically important technologies and materials.

China Criticises the Move

China has strongly opposed the new tariffs.

The Chinese embassy in Washington said the decision would “seriously disrupt” trade between the two countries and warned that Beijing would take steps to protect Chinese companies.

The embassy also accused Washington of using government power against Chinese businesses.

It argued that protectionist measures would not make the US economy more competitive.

Another Escalation in US-China Trade Tensions

The polysilicon tariff comes as the US and China continue to compete over technology, manufacturing and critical supply chains.

Semiconductors have become one of the most sensitive areas of the relationship, with Washington introducing measures aimed at limiting China’s access to advanced technologies while encouraging domestic production.

The latest tariff could further reshape global supply chains for semiconductors and solar products, while adding to the broader trade tensions between the world’s two largest economies.

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