Will China impose tariffs on lithium-ion EV batteries?

An interesting issue will be the imposition of tariffs. There are existing tariffs pursuant to Section 301 of the Trade Act of 1974 on some Chinese-origin lithium-ion EV batteries and non-lithium-ion battery parts, which were increased to 25% in September 2024.

How many lithium batteries did the US import in 2024?

This marks a significant increase compared to the average 20.8% rate recorded in 2024. Recent trade data shows that the U.S. imported approximately $1.9 billion lithium batteries from China in 2024. With the implementation of Trump’s China tariffs in 2025, these imports now face a much higher cost structure.

Is China still a supplier of lithium battery cells?

China remains a primary supplier of lithium battery cells for the U.S. market. In December 2024, lithium battery imports from China exceeded $1.9 billion, according to U.S. trade records. However, changes under the 2025 tariff framework have added new barriers to this trade.

Which international trade issues will remain a concern for energy storage projects?

Two major areas of international trade that will remain causes of concern for energy storage projects are the application of tariffs and supply chain integrity.

How are battery tariffs reshaping global trade?

As new battery tariffs and expanded China tariffs continue to reshape global trade, U.S. policymakers and businesses are reevaluating the domestic battery supply chain. This section outlines the current status of U.S. battery production, the resources required to scale it, and the challenges involved in reducing reliance on overseas suppliers.

When will Chinese-origin lithium-ion non-EV batteries be taxed?

Tariffs on Chinese-origin lithium-ion non-EV batteries are scheduled to increase to 25% effective January 1, 2026. Otherwise, batteries of non-Chinese origin storage batteries have not been subject to multi-front targeted tariff or duty actions.