Taipei: New U.S. trade measures covering imports of polysilicon and related products are expected to have only a limited impact on Taiwan's solar manufacturers, according to industry representatives. U.S. President Donald Trump on Thursday signed an executive order establishing minimum import prices for polysilicon and its derivatives and imposing an additional 15 percent tariff on polysilicon ingots and downstream products.

According to Focus Taiwan, the measures, introduced under Section 232 of the Trade Expansion Act of 1962, are scheduled to take effect on Dec. 4. The White House states that they are intended to protect the U.S. polysilicon industry and supply chain from imports deemed a threat to national security.

For products from Taiwan, Japan, South Korea, Switzerland, Liechtenstein, and European Union member states, the combined rate of the new Section 232 tariff and the regular U.S. customs duty will be capped at 15 percent. Products from the United Kingdom will be subject to an additional Section 232 tariff of no more than 10 percent.

In addition to polysilicon, products affected by the new measures also include polysilicon ingots, wafers, solar cells, and solar modules. Speaking with CNA, Henry Chiang, vice president of solar cell maker TSEC Corp., explained that Taiwanese products would face more favorable tariff treatment than those from major competitors such as China and several Southeast Asian countries. This difference is expected to limit the impact of the measures on Taiwanese suppliers.

Chiang added that U.S. polysilicon production remained insufficient to meet domestic demand, meaning American manufacturers would continue to rely on imports. The measures were therefore likely to raise costs in the U.S. market without significantly changing the industry's competitive landscape.

Another Taiwanese solar cell manufacturer, United Renewable Energy Co. (UREC), noted that the measures were aimed at reducing U.S. dependence on imports and strengthening domestic production. UREC expressed hope that Washington would offer preferential treatment to foreign companies that had invested or pledged to invest in the United States. UREC also mentioned not ruling out the expansion of its investment and production capacity in the United States while maintaining its manufacturing base in Taiwan.

Meanwhile, the Taiwan Photovoltaic Industry Association (TPIA) indicated that U.S. efforts to reduce reliance on Chinese imports could create opportunities for American manufacturers to cooperate with Taiwanese companies through technology licensing or contract manufacturing. The association suggested that the measures could accelerate the development of closer industrial partnerships between Taiwan and the United States.