With the US being a major market for Chinese solar and EV products, especially lithium-ion batteries, the increased tariffs will raise the cost of Chinese products, weakening their competitiveness. China’s lithium-ion battery exports to the US were valued at $15.3 billion in 2024, accounting for 25% of its total exports.
China’s lithium-ion battery exports to the US were valued at $15.3 billion in 2024, accounting for 25% of its total exports. This market share may now shrink due to higher costs and more stringent tariff policies. The tariff hikes will not only impact the final products but also reverberate across the entire global supply chain.
The newly increased tariffs on imports from China, effective as of September 27, 2024, specifically target products vital to the solar industry: Solar cells and modules: Tariffs have doubled, increasing from 25% to 50%. Lithium-ion batteries: For electric vehicles, these batteries now face a tariff of 25%, up from 7.5%.
The U.S. had imposed several trade barriers against Chinese solar cell and module imports. In addition to the original 25% tariff under the Section 301, there are anti-dumping and countervailing duties (AD/CVD) that have been imposed since 2012 as well as the Section 201 tariffs targeting cells and modules from all countries.
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With the US being a major market for Chinese solar and EV products, especially lithium-ion batteries, the increased tariffs will raise …
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