NEWS: A new Trump administration tariff on polysilicon aims to boost domestic solar production—but the industry isn’t pleased.

What happened: Citing national security concerns, President Trump announced a 15% tariff on imports of polysilicon—a key ingredient in solar panels and AI infrastructure. China dominates global polysilicon production, while the US share of worldwide manufacturing has dropped from 50% in 2005 to less than 2% in 2024. 

Solar and security: In a rare pro-solar nod, Trump’s executive order acknowledges solar’s use in “various United States defense programs and artificial intelligence innovations.”

What happens now: The US must rely on its two existing polysilicon factories, located in Michigan and Tennessee. But the Trump administration says it will offer companies incentives to spur more domestic production.

The industry response? “Imposing tariffs and prices floors on solar materials will create new challenges for American manufacturers and raise energy costs for families and businesses,” wrote Solar Energy Industries Association CEO Tim Pawlenty in a statement. For example, most planned domestic factories haven’t even broken ground yet—and today’s limited capacity can’t meet current demand.