Trump Administration To Impose 93.5% Tariffs On Key Battery Material Imports From China: Report
The Trump administration will impose 93.5% tariffs on imports of Chinese Graphite, a crucial element in the production of Lithium-ion batteries, which could have wide-scale implications.
What Happened: The U.S. Commerce Department will impose the anti-dumping tariffs after it concluded that the material was "unfairly subsidized", Bloomberg reported on Thursday.
The new tariffs would stack up on the existing tariffs imposed on Graphite, taking the total tariff to over 160%, according to American Active Anode Material Producers, a trade group cited in the report.
The group had earlier filed petitions with federal agencies, calling for investigations into Chinese companies that were possibly violating "anti-dumping laws," the report suggests.
The tariffs could add to supply chain issues faced by automakers, as Beijing currently imposes restrictions on the export of some critical materials used in EV battery production.
An expert cited in the report said the tariff would add over $7 per Kilowatt-hour in costs for producing EV batteries. Elon Musk's Tesla Inc. (NASDAQ:TSLA) has pushed against the tariffs, claiming that the domestic supply chain isn't developed enough to not rely on Chinese imports, the report suggests.
Why It Matters: The news comes as Trump's tariffs could pose new challenges for the auto industry, as the administration recently ended the $7,500 EV credit as part of the Big Beautiful Bill law.
Trump had also announced last month in a press briefing that he could impose new, hiked tariffs on automakers as well, in a bid to boost domestic production. "The higher you go, the more likely it is they build a plant here," Trump said.
The administration's tariffs have also impacted the used car market, with the average used car price surging to a new single-largest high since August 2022, according to data released by Cox Automotive.
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