U.S. solar energy stocks rose Friday after President Donald Trump imposed new tariffs on certain products containing polysilicon, a critical material used in the production of solar panels and semiconductors.
The measures, announced Thursday, include a 15% tariff on polysilicon-derived products and minimum pricing requirements for some related imports. The administration said the action is intended to protect domestic supply chains from foreign competition, particularly from China, while strengthening U.S. production in the solar, semiconductor, energy and artificial intelligence sectors, according to CNBC.
Trump imposed the tariffs under Section 232 of the Trade Expansion Act of 1962 following recommendations from Commerce Secretary Howard Lutnick.
In an executive order accompanying the move, Trump said foreign trade practices had weakened U.S. polysilicon producers and created economic and national security concerns. The administration said the new tariffs are intended to restore domestic production and reduce American reliance on foreign suppliers.
China has become the dominant force in global solar manufacturing, controlling much of the supply chain from polysilicon and wafers to finished solar panels. The International Energy Agency has estimated that Chinese manufacturers account for roughly 80% of global solar module production and about 90% of production in some upstream portions of the supply chain, including polysilicon and wafers.
China built that position through years of large-scale investment, government industrial policy and rapid manufacturing expansion. The resulting surge in production has helped push solar panel prices lower worldwide, but it has also made the United States and other countries heavily dependent on Chinese-controlled supply chains for a technology increasingly viewed as strategically important.
Washington has spent years attempting to reduce that dependence. The United States has imposed antidumping, countervailing and other trade restrictions on Chinese solar products, while federal officials have also targeted solar supply chains connected to China’s Xinjiang region over forced-labor concerns.
In January 2025, the United States increased Section 301 tariffs on Chinese polysilicon and solar wafers to 50%, part of a broader effort to counter Chinese dominance in strategic manufacturing sectors. Trump’s latest action expands that trade pressure beyond existing China-specific measures.
Solar stocks moved higher following Thursday’s announcement. Shares of First Solar climbed more than 4%, while SolarEdge Technologies also posted gains. The Invesco Solar ETF rose more than 2% in morning trading.
The tariffs mark the latest development in U.S.-China trade tensions surrounding advanced manufacturing, energy technology and strategic materials. Polysilicon is a central component of photovoltaic cells used in solar panels and is also important to semiconductor manufacturing, making control of its supply chain increasingly significant to both economic and national security policy.
