The United States will raise tariffs on Chinese lithium-ion batteries starting April 5, 2025. The new tariff rate for electric vehicle (EV) batteries will reach 82.4%. Non-EV lithium-ion batteries will face a tariff increase to 64.9%, which will rise to 82.4% by January 2026. This increase will significantly affect industries relying on these energy storage systems.
How the New Tariff Policy Will Affect the EV Industry and Beyond
The tariff hike will impact industries like electric vehicles, energy storage, and consumer electronics. These sectors rely heavily on lithium-ion battery technology. As the EV market continues to grow, higher tariffs will drive up vehicle prices. This could result in higher costs for both consumers and manufacturers.
Section 301 and Additional Tariffs on Lithium-Ion Batteries
The 82.4% tariff on lithium-ion batteries builds on existing tariffs. The U.S. Customs and Border Protection currently applies a 3.4% tariff, plus two separate 10% tariffs on Chinese goods. Additionally, Section 301 tariffs impose a 25% duty on lithium-ion EV batteries and a 7.5% duty on non-EV batteries. By January 2026, the Biden administration plans to increase the Section 301 tariff on non-EV batteries to 25%. This will escalate trade tensions between the U.S. and China.
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