U.S. to impose 15% tariff on Chinese polysilicon from December, domestic industry expects gains

The United States is set to impose a 15% tariff on imports of polysilicon and its derivative products beginning December 4, a move aimed at addressing Chinese oversupply in the solar industry. This action, signed into effect by President Donald Trump, targets polysilicon ingots, wafers, solar cells, and modules, seeking to curb dumping practices and encourage domestic production.

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The U.S. trade barrier is intended to prevent the dumping of Chinese-made polysilicon, and domestic companies are expected to benefit.

The U.S. measure also establishes a Minimum Import Price (MIP) for these products. For polysilicon, the MIP is set at $21 per kilogram; for ingots and wafers, it's $100 per kilogram; for solar cells, $0.22 per watt; and for solar modules, $0.38 per watt. If imported products sell below these prices, the difference will be levied as a tariff.

Industry analysts suggest the direct impact on South Korean companies may be limited, as the tariffs are primarily aimed at China's dominant global polysilicon supply chain. South Korean firms like OCI, which produces non-Chinese polysilicon in Malaysia, could potentially benefit from increased prices of Chinese imports. Hanwha Q CELLS, with its U.S. manufacturing facilities for cells and modules, might also see an advantage as Chinese products become less competitive.

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The U.S. measure is aimed at curbing Chinese oversupply and expanding domestic production.

However, concerns remain that the new trade barriers could increase the cost of solar power in the U.S., potentially hindering the overall growth of the related industry. South Korean semiconductor companies operating in the U.S., such as Samsung Electronics, are closely monitoring the situation, anticipating potential market ripple effects and further U.S. government actions.

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The impact on domestic companies is expected to be limited as the measure targets China's dominant global polysilicon supply chain.

South Korea's Ministry of Trade, Industry and Energy stated that the value of polysilicon exports to the U.S. was approximately $2.2 million last year, with derivative products estimated at $430 million. The ministry plans to hold review meetings with relevant departments and industry stakeholders to thoroughly assess the impact on exporting and investing companies and will engage in close consultations with the U.S. to ensure minimal disruption for Korean businesses.

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We will hold review meetings with relevant departments and industry stakeholders to thoroughly examine the impact on exporting and investing companies and will consult closely with the U.S. to minimize the impact on our companies.