Trump Imposes 15% Tariff on Polysilicon Imports Amid US-China Tech Rivalry

Escalating Trade Conflict

The US tariff announcement came one day after China unveiled a fresh round of retaliatory measures, including tighter export controls on drones and related technologies, sanctions on seven American companies, and its first-ever national security review of foreign trade-related imports.

Beijing stated those actions were a direct response to recent US restrictions imposed last month, which included sanctions on numerous Chinese companies and a ban on imports of new Chinese drones, humanoid robots, and specific power inverters. Those restrictions were announced shortly before the anticipated Trump-Xi meeting.

Both countries have increasingly targeted each other's strategic industries in recent years. Washington has tightened curbs on advanced AI chips, semiconductor manufacturing equipment, drones, connected vehicles, and other technologies. China has countered with export controls on critical minerals and restrictions aimed at specific US companies.

Beijing's Response and Industry Data

China swiftly condemned the tariff order, with its embassy spokesman Liu Chang telling the South China Morning Post that Washington was "overstretching the concept of national security" and "abusing state power."

"The US move seriously disrupts normal trade and economic exchanges between Chinese and US businesses," Liu said, adding that "protectionism will not make the US more competitive."

Industry data confirms China's commanding position: the country accounted for more than 90% of global polysilicon production in 2024. Polysilicon, an ultra-pure form of silicon derived from quartz, serves as the primary raw material for both semiconductor chips and solar panels, making it a foundational input for two of the world's most strategically important technology sectors.

What Comes Next

The tariff measures are scheduled to come into effect in December, giving industry stakeholders several months to prepare for the new trade regime. The announcement also sets the stage for heightened tensions ahead of next month's planned meeting between Trump and Xi Jinping on US soil, where trade and technology competition are expected to dominate the agenda.