Trump imposes 15% tariff on key chip material to counter China
21 minutes ago
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US President Donald Trump signed an executive order on Thursday that imposes a 15% tariff on imported products made from polysilicon, a crucial material used in semiconductors and solar panels
The order also set minimum import prices on polysilicon and related products. It comes after a national security investigation into the production of the material overseas
The move is intended to help protect US manufacturers as they face increasing competition from China’s chip industry – a key
The Chinese embassy in Washington said the move “seriously disrupts” trade between the two countries and Beijing will act to protect its companies
Washingtom is “abusing state power to go after Chinese businesses,” the embassy said, adding that protectionism will not make the US more competitive
Trump said in the order that he had accepted recommendations by Secretary of Commerce Howard Lutnick to set minimum import prices as well as a 15% tariff on polysilicon and related imports
The measures are due to take effect in December
The US will also offer incentives to boost domestic production, it added
For decades, the US has allowed “foreign firms to weaken United States producers in the polysilicon sector,” said Trump, who has long advocated for the use of tariffs to protect American jobs and boost the economy
The material is critical in military equipment and electronics, yet imports have led to the US’ share of global polysilicon production to fall from 50% in 2005 to less than 2% in 2024, Trump said
China holds a near monopoly on the production of polysilicon
The order is likely to benefit Hemlock Semiconductor and Wacker Chemie, which are the main producers of the material in the US
The production of computer chips is central to the race between the US and China to develop artificial intelligence (AI). Washington and Beijing have also been locked in a tit-for-tat tariffs war, which has been on hold since May 2025
Analysts quoted by Chinese state media outlet Global Times said the new tariff marks the latest escalation in Washington’s efforts to limit China’s role in critical technology supply chains
The move follows other US restrictions on the imports of drones, humanoid robots and other tech products from China
China announced a range of countermeasures this week, including tighter export controls on drones. Beijing also launched a national security review into imported printers and copiers
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