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United States adopts minimum import prices, duties, and investment incentives for polysilicon (solar) sector

Section 232 measures establish minimum import prices, additional duties, and onshoring incentives for domestic polysilicon production.

august 7, 2026

President Trump signed a proclamation on August 6, 2026, taking action under Section 232 of the Trade Expansion Act of 1962 following a U.S. Department of Commerce investigation that concluded that imports of polysilicon and its derivative products threaten to impair U.S. national security.

Minimum import price (MIP) program

Effective for goods entered for consumption, or withdrawn from a warehouse for consumption, on or after 12:01 AM ET on December 4, 2026, the proclamation establishes a minimum import price (MIP) program for imported polysilicon and polysilicon derivatives specified in Annex I and Annex II. The MIPs are set at:

  • $21 per kilogram for polysilicon
  • $100 per kilogram for polysilicon ingots and wafers
  • $0.22 per watt for solar cells
  • $0.38 per watt for solar modules

The Secretary of Commerce may adjust the MIPs to reflect market conditions or other factors affecting the fair market value of covered products under nondistorted, free-market conditions.

Under the program, importers may submit entry documentation establishing or certifying that the first arm’s-length U.S. sale of the merchandise, or applicable downstream products made from that merchandise, will occur at or above the relevant MIP. Importers also may document that the first arm’s-length sale is made under fixed terms in a contract entered into before the proclamation was signed.

If an importer does not submit the required documentation, the merchandise will be subject to a specific tariff equal to the applicable MIP. If the importer submits the documentation but the merchandise’s entered value is less than the MIP, the merchandise will be subject to a specific tariff equal to the difference between the entered value and the MIP.

Additional duties

The proclamation also imposes, beginning December 4, 2026, an additional 15% ad valorem duty on imports of polysilicon ingots and the polysilicon derivatives specified in Annexes I and II, except as otherwise provided. The duty generally applies in addition to other duties, taxes, fees, exactions and charges.

For covered products of Japan, Korea, Taiwan, Switzerland, Liechtenstein or an EU member country, the sum of the additional Section 232 tariff and the applicable Column 1 duty rate under the Harmonized Tariff Schedule of the United States (HTSUS) will equal 15%. For covered products of the United Kingdom, the additional duty will be 10%.

Investment incentive program

In addition, the proclamation authorizes the Secretary of Commerce to establish an investment incentive program covering U.S. production of raw polysilicon, ingots, wafers, and cells. A company’s onshoring plan must include a commitment to build, refurbish, or expand a U.S. facility producing covered products and, if the plan is approved, to begin construction by January 20, 2029.

A company with an approved plan may be permitted to import necessary production equipment and covered products without paying applicable Section 232 duties, in volumes the Secretary considers commensurate with the company’s newly committed investment. The benefits will be tied to the facility’s construction period, contingent on sufficient progress under the approved plan and subject to monitoring and enforcement.

Read the related White House fact sheet on tariffs on polysilicon and its derivatives (August 6, 2026).

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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