Seoul: U.S. President Donald Trump signed a proclamation imposing a 15 percent tariff on polysilicon derivative products, a strategic move aimed at bolstering America's polysilicon manufacturing sector, which is integral to semiconductor and solar panel production.
According to Yonhap News Agency, the tariff will be effective from December 4, and the decision is being closely watched by South Korea's chip industry due to its potential impact on their operations in the United States. The proclamation also mandates minimum import prices for polysilicon and its derivatives, as the U.S. intensifies efforts to preserve its technological advantage amidst escalating competition with China in fields such as artificial intelligence and other advanced technologies.
Trump emphasized the significance of polysilicon to the U.S. semiconductor and solar-power supply chains, highlighting that foreign influences have previously weakened domestic producers in this sector, compromising economic and national security. The tariff is part of broader efforts to revitalize the U.S. polysilicon industry, ensuring a level playing field for American producers of these critical goods.
The tariff action falls under Section 232 of the Trade Expansion Act of 1962, which empowers the president to adjust imports if they are deemed a threat to national security. The Trump administration has consistently utilized tariffs to mitigate trade deficits and bolster domestic manufacturing, although these policies have faced legal challenges.
White House Staff Secretary William Scharf elaborated on the proclamation, underscoring its intent to support domestic manufacturing and safeguard American industries from foreign competition. Commerce Secretary Howard Lutnick highlighted the foundational role of polysilicon in AI chip production and the necessity of securing the supply chain within the U.S.
In reaction to the U.S. measure, South Korea's Ministry of Trade, Industry and Energy announced plans to convene with relevant ministries and companies to evaluate the tariff's impact on South Korean exports to the U.S. and its broader implications for Korean businesses. The ministry intends to engage in close discussions with Washington to mitigate potential adverse effects on trade and Korean enterprises.
South Korea's exports of polysilicon and its derivatives to the U.S. were estimated at $2.2 million and $430 million respectively in 2025, as reported by the ministry.