U.S. Opens Tariff Investigation into Imported Polysilicon
The U.S. Department of Commerce has launched a national security probe under Section 232 into polysilicon—an essential material for solar panels and semiconductors. This investigation, first initiated July 1 and disclosed on July 14, aims to assess whether foreign subsidies, trade practices, or export limits threaten U.S. supply chains.Solar Power World+8Financial Times+8Reuters+8 What Triggered the Investigation? Polysilicon is a cornerstone of solar panel production, but global supply is heavily reliant on China. In fact, Chinese producers offer polysilicon at around $4.70/kg—significantly less than U.S.-sourced alternatives at $18–25/kgpv magazine International. The Commerce Department is reviewing how foreign government subsidies, potential “predatory” pricing, and the possibility of export restrictions might enable Beijing to “weaponize” control over polysilicon supply.pv magazine International+2pv magazine USA+2Financial Times+2 What Section 232 Means Section 232 of the Trade Expansion Act allows tariff or import limitations when imports are found to threaten national security. Previous uses included steel, aluminum, automobiles, and copper. If the investigation finds polysilicon imports create a security risk, the U.S. could impose new duties or quotas.Barron’s+5pv magazine USA+5Financial Times+5 Why Solar Businesses Should Pay Attention Key Questions the Government Is Asking The public comment invitation highlights several areas under review:pv magazine USA+1pv magazine International+1 What Orphan Annie Solar Recommends At Orphan Annie Solar, we’re monitoring this situation closely. Here’s how solar professionals and homeowners can prepare: