Trump imposes 15% tariff on key chip material to counter China

For decades, the US has allowed "foreign firms to weaken United States producers in the polysilicon sector," said Trump, who has long advocated for the use of tariffs to protect American jobs and boost the economy.The material is critical in military equipment and electronics, yet imports have led to the US' share of global polysilicon production to fall from 50% in 2005 to less than 2% in 2024, Trump said.China holds a near monopoly on the production of polysilicon.The order is likely to benefit Hemlock Semiconductor and Wacker Chemie, which are the main producers of the material in the US.The production of computer chips is central to the race between the US and China to develop artificial intelligence (AI). Washington and Beijing have also been locked in a tit-for-tat tariffs war, which has been on hold since May 2025.Analysts quoted by Chinese state media outlet Global Times said the new tariff marks the latest escalation in Washington's efforts to limit China's role in critical technology supply chains. The move follows other US restrictions on the imports of drones, humanoid robots and other tech products from China.China announced a range of countermeasures this week, including tighter export controls on drones. Beijing also launched a national security review into imported printers and copiers.