Polysilicon and the Merits of Trade Measures as Industrial Policy
On August 6th, President Trump invoked Section 232 to impose minimum import prices and tariffs on foreign polysilicon and derivative products, aiming to boost domestic manufacturing capacity. The U.S. share of global polysilicon production fell from 50 percent in 2005 to under 2 percent today, and prior trade measures have been largely unsuccessful.
Why it matters: This action illustrates the theme of trade policy as industrial policy, highlighting the challenges of using tariffs and price floors to rebuild domestic manufacturing capacity in a globally competitive market.