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Trump imposes 15% tariff on key chip material to counter China
BBC • • general
Key Points:
- US President Donald Trump signed an executive order imposing a 15% tariff and minimum import prices on polysilicon, a key material for semiconductors and solar panels, effective December.
- The move follows a national security investigation and aims to protect US polysilicon manufacturers amid rising competition from China's chip industry.
- The Chinese embassy condemned the tariffs, accusing the US of abusing state power and disrupting bilateral trade, pledging to protect Chinese companies.
- Trump highlighted the decline of US polysilicon production from 50% in 2005 to under 2% in 2024 due to foreign competition, emphasizing the material's importance for military and electronics.
- The tariff is expected to benefit US producers like Hemlock Semiconductor and Wacker Chemie and represents a further escalation in the US-China technology and trade tensions.
