Tariffs on energy storage power abroad

What are China's new tariffs on lithium-ion batteries?

On May 14, 2024, the Biden Administration announced changes to section 301 tariffs on Chinese products. For energy storage, Chinese lithium-ion batteries for non-EV applications from 7.5% to 25%, more than tripling the tariff rate. This increase goes into effect in 2026. There is also a general 3.4% tariff applied lithium-ion battery imports.

How will tariffs affect EV manufacturing?

The tariffs will undoubtedly impact U.S. efforts to develop an EV manufacturing base, with potential ripple effects into clean energy. Why Now? Since the administration cannot push new climate legislation through Congress before the November election, it is using executive authority over trade to shore up its signature clean energy policy.

Are tariffs a good opportunity for US exporters?

For the rest of the world, the tariffs can present an opportunity. Exporters in countries other than China now have less competition for selling in the U.S. market: examples include Canadian and Australian mineral producers and Indian solar producers.

Why are China's EV tariffs a big deal?

The tariffs’ primary aim is to safeguard the U.S. auto industry’s competitiveness as it shifts toward electrification. They impose a 100 percent fee on Chinese EVs, despite their minimal U.S. market share, to prevent potential market saturation.

Can BYD avoid China tariffs?

BYD is already planning to build a factory in Mexico, where it could avoid China-specific tariffs—and perhaps all tariffs. Another option is to enter into joint ventures with or license technology to U.S.-based automakers, if U.S. politics will permit it.

What are Biden's new tariffs on Chinese imports?

On Tuesday, U.S. President Joe Biden announced a slew of new of trade tariffs on Chinese imports, including electric vehicles (EVs), lithium-ion batteries, certain types of magnets, critical minerals, steel, and aluminum.