Taipei: U.S. President Donald Trump signed an executive order Thursday imposing minimum import prices (MIP) and a 15 percent tariff on polysilicon -- the primary raw material used to manufacture semiconductors and solar panels -- and related products. The new duties, effective December 4, will be in addition to any other tariffs, taxes, or fees on the affected products, as stated by the White House.

According to Focus Taiwan, these measures cap the combined tariff rate at 15 percent for imports from Japan, South Korea, Taiwan, Switzerland, Liechtenstein, and European Union member states. For the United Kingdom, the tariff rate will be capped at 10 percent. The minimum import prices have been set at $21 per kilogram for polysilicon, $100 per kilogram for polysilicon ingots and wafers, $0.22 per watt for solar cells, and $0.38 per watt for solar modules.

The measures follow a year-long investigation by the U.S. Department of Commerce, which concluded that imports had reduced the capacity of the U.S. polysilicon industry. The White House noted that the U.S. share of global polysilicon production capacity decreased from 50 percent in 2005 to less than 2 percent by 2024. President Trump stated that the tariffs, in conjunction with the MIP program, would promote U.S. production of polysilicon derivatives by ensuring a commercially viable market.