The Donald Trump administration is expected to announce a 15% tariff on polysilicon and set minimum prices for several solar-related products as early as Thursday, news agency Reuters reported, citing four people familiar with the matter.
Polysilicon is a key raw material used to make solar panels and semiconductors. The move is aimed at protecting US polysilicon factories as China expands its role in the global chip supply chain.
The planned measures are part of a wider effort by the Trump administration to reduce China’s influence over important industries and strengthen manufacturing in the US.
US plans tariff and minimum import prices
The order from US President Donald Trump is expected to introduce minimum import prices for polysilicon, wafers, solar cells and finished solar panels.
Along with these price floors, the administration plans to impose a 15% tariff on products made from polysilicon.
The combination of minimum prices and tariffs is unusual. Under the plan, imported products would have to meet a minimum price, while certain polysilicon-based products would also face the 15% tariff.
Move comes as US targets China’s role in chips
The decision follows a year-long national security investigation into polysilicon by the US Commerce Department. The investigation is important not only for the solar industry but also for the US semiconductor sector because polysilicon is used in making computer chips.
The Trump administration is concerned about China’s growing ambitions in the chip supply chain and wants to protect US production of the material. The new measures are therefore expected to affect both the solar and semiconductor industries.
Solar industry faces a major change
The tariff plan also comes at a difficult time for the US solar manufacturing industry.
The US has been trying to expand domestic production of solar panels and related products. However, the Trump administration has also rolled back federal support for renewable energy.
This has created uncertainty for American solar manufacturers, who are now facing a new trade policy at a time when government support for the renewable energy sector has been reduced.
The new tariffs and minimum import prices could change how solar products are imported and sold in the US. This will give American manufacturers more protection from cheaper foreign products.
The tariff and price floors are expected to be formally announced through a proclamation from Trump as soon as Thursday.
Will it Impact India?
The US tariff may not directly hurt India much because Indian solar products already face duties of over 100% in the US.
But India could still be affected if the measures make key solar materials like polysilicon and wafers more expensive globally.
India depends almost entirely on imports for these materials, which could raise solar manufacturing and project costs. More Chinese products could also enter other markets, increasing competition. At the same time, this could push India to build more of its own solar supply chain.
India’s solar exports face a separate US tariff battle
India’s broader tariff burden eased this year after Trump cut tariffs on most Indian goods from 50% to 18% under a February 2, 2026 trade deal. The earlier 50% rate included an additional 25% tariff imposed in August 2025 over India’s Russian oil purchases. In return, India agreed to lower tariffs on US goods, reduce Russian oil purchases and buy more than $500 billion worth of US goods.
The tariff relief, however, did not cover Indian solar panels and solar cells.
Just weeks later, on February 25, 2026, the US Commerce Department imposed a separate preliminary countervailing duty of around 126% on solar cells and modules from India. The move came after the US found that India was providing subsidies to its solar industry at roughly the same rate.
The case was brought by the US solar manufacturing industry, which had complained about competition from Indian imports.
So, while India’s overall tariff situation with the US improved significantly this year, its solar exports continue to face a separate and much heavier duty.