Trump Administration Targets Chinese Polysilicon with New Trade Barriers

The proposed hybrid system, anticipated later this month, utilizes Section 232 of the Trade Expansion Act to address what the administration views as a national security threat. By leveraging this authority, officials aim to counter China’s control over roughly 80% of global solar manufacturing. To mitigate the impact on domestic industry, the plan reportedly includes provisions allowing importers who invest in U.S. wafer and cell production to offset the increased costs brought by the trade protections.

Michigan-based Hemlock Semiconductor, a joint venture between Corning and Japan’s Shin-Etsu Handotai, stands as a primary beneficiary of the effort to decouple the chip supply chain from Chinese influence. While the White House and the Commerce Department have declined to confirm specific details, the proposal mirrors previous administration tactics used against steel and automotive imports. Beijing has already pushed back against the investigation, with a spokesperson for the Chinese Embassy in Washington calling for an end to the tariff measures and urging a resolution through diplomatic dialogue.