The United States is moving to impose a 15% tariff on polysilicon and its derivative products. The United States is also moving to impose minimum import prices on polysilicon, wafers, cells, modules, and solar panels.

This proposal follows a national security investigation the US launched in July 2025 under Section 232 of the Trade Expansion Act of 1962. The investigation covers imports of polysilicon and its derivative products.

Beijing has voiced opposition to the plan. An embassy spokesperson said China firmly opposes the US overstretching the concept of national security and abusing state power to unjustifiably suppress Chinese companies.

The spokesperson added that protectionism will not enhance US competitiveness. What the US has done seriously impedes normal economic and trade exchanges between Chinese and American companies and serves the interests of no party, including American businesses and consumers, the spokesperson said.

China will continue to firmly safeguard the lawful and legitimate rights and interests of Chinese companies, the spokesperson said. The Chinese embassy in Washington said the US must stop the Section 232 tariff measures as soon as possible.

The Chinese embassy in Washington said concerns should be resolved through equal dialogue. Huo Jianguo is vice chairperson of the China Society for World Trade Organization Studies in Beijing.

The Trump administration has overstretched the concept of national security, Huo Jianguo said. Washington should avoid rash protectionist moves that serve no one’s interests, disrupt global supply chains and fail to boost US competitiveness, Huo Jianguo said.

Lu Jinbiao is an industry expert with the China Photovoltaic Industry Association’s expert committee. Since 2012, the US has relied on anti-dumping investigations, tariffs, and tax incentives to steer Chinese solar panel makers toward American soil.

In 2012, the Obama administration imposed anti-dumping tariffs on Chinese solar products. In 2018, the Trump administration imposed tariffs that forced Chinese solar makers to relocate entire factories to Southeast Asia.

In 2022, the Biden administration launched the Inflation Reduction Act, subsidizing Chinese firms to build factories in the United States. By 2012, China accounted for roughly 50% to 60% of global solar cell and module production.

By 2025, China controlled roughly 95% to 98% of global wafer production. By 2025, China controlled 85% to 92% of global solar cell output.

China joined the World Trade Organization in 2001. China has tightened its exit-entry regulations.

Under the One Big Beautiful Bill Act, solar panel makers had to have formally begun building their factories in the US before July 4, 2026, to lock in the federal tax credit. President Donald Trump set the July 4, 2026 deadline for construction to qualify for tax credits.

After July 4, 2026, solar panel makers have a four-year grace period to complete construction to qualify for tax credits. The One Big Beautiful Bill Act sets rising domestic-content thresholds for solar components. Modules sold in the US must be 80% domestically sourced in 2029.

Inverters must be 50% domestically sourced in 2026. Inverter domestic content requirements increase five percentage points a year to reach 65% by 2029.

The One Big Beautiful Bill Act bars tax credits for any US taxpaying entity that qualifies as a prohibited foreign entity (PFE). A US project company is classified as a prohibited foreign entity if a government, citizen, or permanent establishment of China, Russia, Iran, or North Korea holds 25% or more of its equity, directly or indirectly.

The One Big Beautiful Bill Act directs the Secretary of the Interior to make available for coal leasing a minimum of 4,000,000 additional acres of the Federal mineral estate within 90 days of enactment. The One Big Beautiful Bill Act officially has no short title, as the official short title was removed from the bill during the Senate amendment process.

The proposed tariffs and price floors target a sector where China holds dominant market share, controlling up to 98% of global wafer production and 92% of solar cell output by 2025. These measures operate alongside the One Big Beautiful Bill Act, which imposes strict domestic content thresholds and prohibits tax credits for entities with significant equity holdings from specific foreign nations.

The legislation also mandates the release of millions of acres of federal land for coal leasing, reflecting a broader energy policy shift. The combination of trade barriers, local content rules, and ownership restrictions creates a complex regulatory environment for solar manufacturers seeking to qualify for federal incentives while navigating international supply chains.

Why It Matters

The proposed 15% tariff and minimum import prices extend a pattern of US measures since 2012 aimed at shifting solar manufacturing from China to American soil. These actions intersect with the One Big Beautiful Bill Act's rising domestic-content thresholds and prohibitions on foreign entity tax credits, fundamentally altering supply chain requirements for the industry. Beijing characterizes the move as an overstretch of national security concepts that impedes trade exchanges between Chinese and American companies.