Australia’s sole silicon manufacturer, Simcoa, will be forced to pull out of the US market entirely after being hit with new tariffs from the Trump administration, according to a report by The Australian Financial Review.
The United States International Trade Commission determined that Australian and Norwegian silicon metal exporters were significantly injuring local producers by selling key components for computer chips and solar panels at ‘less than fair value’.
The decision triggers a new import tariff of roughly 40 per cent against the Western Australia-based manufacturer, comprising a 6 per cent anti-dumping duty and a 32 per cent countervailing duty, layered on top of an existing 12.5 per cent tariff.
The Australian federal government condemned the decision, describing the measures as unjustified and inconsistent with the Australia-US Free Trade Agreement.
Simcoa, which exports approximately 10,000 tonnes of silicon, or one-third of its annual output, to the US each year, declared the tariffs a crippling blow.
Vice President David Miles confirmed the company cannot absorb the heavy impost.
“Bottom line is that means we’re out. We can’t possibly absorb that kind of duty and still maintain a sales presence in the United States,” Miles said, adding that the company was considering appealing the decision while attempting to pivot into Asian markets.
The US justified the countervailing duties by claiming Simcoa received government subsidies through demand-supply management energy programs. Miles dismissed the claim, noting demand-supply management is standard practice worldwide for energy-intensive industries.
The tariffs strain the AU$4.6 billion bilateral critical minerals pact signed between Australia and US late last year to counter China’s market dominance.
Australian Strategic Policy Institute senior fellow Ian Satchwell warned that Washington’s ‘cherry-picking’ approach makes the US an increasingly unreliable trade partner.
The trade blow comes at a delicate time for Simcoa, which is owned by Japan’s Shin-Etsu Chemical. Weak global silicon prices forced the producer to shut one of its three furnaces at Kemerton in March, contributing to a AU$106.3 million post-tax loss in 2025, down from a AU$2.4 million profit in 2024.
