Tariffs on solar wafers, polysilicon and certain tungsten products from China will increase sharply on Jan. 1, 2025, the Biden administration announced Wednesday. That means higher prices for key materials needed to make solar panels at a time when solar power is the mainstream option. fastest growing source of electricity in the US
Polysilicon is used to make solar wafers, which are the semiconductors in solar panels. Tungsten (the same material as old-school incandescent light bulbs) has many uses in electronics due to its high melting point. The metal is also part of the supply chains of the aerospace, automotive, defense, medical, and oil and gas industries.
That means higher prices on key materials needed to make solar panels at a time when solar energy is the fastest-growing source of electricity in the U.S.
It is the latest example of the Biden administration raising tariffs on products from China, which dominates solar energy manufacturing, as part of its plan to build domestic clean energy supply chains.
“The tariff increases announced today will further mitigate the PRC's harmful policies and practices,” Ambassador Katherine Tai said in a statement. “These actions will complement domestic investments made under the Biden-Harris Administration to advance a clean energy economy, while increasing the resilience of critical supply chains.”
American manufacturers welcomed the changes. “These trade measures will begin to counteract the Chinese government's widespread subsidies in solar energy manufacturing. It’s a step in the right direction,” Mike Carr, executive director of the Solar Energy Manufacturers Coalition for America (SEMA), said in an emailed statement.
President-elect Donald Trump has said he plans raise rates on goods imported from China even more than its predecessor, which is expected to raise prices for everything from cars to electronics.