Trump announces tariffs on key part for solar panels, other electronics

Aug. 7 (UPI) — President Donald Trump has signed an order imposing tariffs on polysilicon — a key component in solar panels and semiconductors — and related products in a bid to help U.S.-based manufacturers and compete with Chinese production.

The order goes into effect in early December. It will create a minimum price for polysilicon imports and a 15% tariff on products made with polysilicon.

“This will bring the supply chain here. We’ve got the industry here; it’s too small, and it’s going to explode,” said Howard Lutnick, U.S.commerce secretary, during the signing Thursday at the White House.

Solar stocks rose in premarket trading Friday after the announcement, CNBC reported.

First Solar’s stock climbed more than 7% before market opening, while Invesco Solar ETF rose 4% and Solaredge Technology climbed 1%.

This order aims to keep polysilicon products under the minimum price from reaching the U.S. market, thus boosting U.S. manufacturers’ sales at higher, profitable prices.

Trump also ordered Lutnick to create an incentive program for companies that will create or escalate production of polysilicon and related products in the United States.

Polysilicon is necessary for much military hardware, including control systems for missiles and drones. It’s also used in electronics such as laptops and cell phones.

The order also authorizes U.S. Customs and Border Protection to restrict imports of the materials if it thinks an importer is trying to avoid the tariffs by stockpiling materials between now and the time the order takes effect.

China has a “near-monopoly” on polysilicon, S&P Global said in an April report.

U.S. businesses that manufacture solar components have won trade cases against competitors from other countries. However, Chinese manufacturers have avoided prior tariffs by exporting from countries that the United States has not targeted with tariffs.

Jon Toomey, president of the Coalition for Prosperous America, which supports the tariffs, said this new order will “solve the endless game” of targeting country after country as China moves manufacturing and export sites.

“For the first time, the United States is protecting the entire solar supply chain with a single action,” he said in a statement.