Trump Administration Imposes Section 232 Tariffs and Minimum Import Prices on Polysilicon and its Derivatives
On August 6, 2026, President Trump signed a Proclamation imposing new tariffs on imports of polysilicon and certain downstream polysilicon derivatives following the Secretary of Commerce’s finding that such imports threaten to impair U.S. national security under Section 232 of the Trade Expansion Act of 1962.
Polysilicon is a critical input for semiconductor and solar product manufacturing, supporting virtually every sector of the modern economy, including defense, cybersecurity, communications, artificial intelligence, renewable energy, and advanced manufacturing.
The Proclamation establishes a new minimum import price (MIP) regime for covered products and imposes additional tariffs on downstream polysilicon derivatives. The measures will take effect for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on December 4, 2026, 120 days after issuance of the Proclamation.
The MIP program establishes the following minimum import prices:
- $21 per kilogram for polysilicon (HTS 2804.61.0000)
- $100 per kilogram for polysilicon ingots and wafers (HTS 3818.00.0020, 3818.00.0040, 3818.00.0045, 3818.00.0050, 3818.00.0091)
- $0.22 per watt for solar cells classified (HTS 8541.42.0010 and 8541.42.0080)
- $0.38 per watt for solar modules (HTS 8541.43.0010 and 8541.43.0080)
Importers must provide documentation demonstrating that the first arm’s-length sale of the imported merchandise (or downstream articles made from those imports) in the United States will occur at or above the applicable minimum import price or that the merchandise is being imported pursuant to fixed terms in a contract entered into before August 6, 2026.
In addition to the MIP program, the Proclamation imposes a 15% ad valorem tariff on imports of downstream products including polysilicon ingots, wafers, solar cells, and solar modules. These duties generally apply in addition to any other applicable duties, taxes, fees, and charges, including antidumping and countervailing duties. However, the Proclamation establishes special treatment for certain trading partners:
- For products of Japan, South Korea, Taiwan, Switzerland, Liechtenstein, and European Union member states, the combination of the Section 232 duty and the ordinary import duty rate will total 15%.
- For products of the United Kingdom, the additional Section 232 duty rate will be 10% rather than 15%.
- For all other countries, the additional 15% duty applies on top of the applicable tariff rate.
The Proclamation includes monitoring and anti-stockpiling provisions in an effort to prevent importers from rushing in products in advance of the December 4 effective date.
The Proclamation also establishes a new onshoring incentive program administered by the Secretary of Commerce. Under the program, companies may submit plans to build, expand, or refurbish U.S. facilities producing polysilicon, ingots, wafers, or cells. Approved participants may receive tariff relief for covered products and production equipment imported in connection with qualifying investments, subject to ongoing compliance and reporting requirements. Construction under approved plans must begin by January 20, 2029.
Annex II to the Proclamation implements the new measures in the Harmonized Tariff Schedule of the United States by creating new Note to HTSUS Chapter 99 provisions (9903.45.30 through 9903.45.36) covering the applicable ad valorem duties and MIP-related specific tariffs. The Annex also confirms that antidumping duties, countervailing duties, and other applicable charges will continue to apply to covered merchandise.
Wiley’s International Trade Practice will continue to monitor developments related to the Administration’s Section 232 tariffs, including future guidance, implementation issues, and potential compliance considerations. We are available to assist companies in evaluating how these measures may affect their operations, supply chains, and tariff obligations. For questions, please contact one of the attorneys listed on this alert.
Carol Sayeg, a law clerk at Wiley Rein LLP, contributed to this alert.
