Energy storage battery tariff 2026
The Biden administration's announcement marks a significant shift in the tariff framework for the energy storage industry. Under the new structure, the Section 301 tariff rate on lithium-ion non-EV batteries imported from China will increase from the current 7.5% to 25%, effective January 1, 2026.
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3 FAQs about [Energy storage battery tariff 2026]
How will China's energy tariffs change in 2026?
A similar increase for non-EV lithium batteries will go into effect in 2026. By 2025, the tariff rate on semiconductors from China will double to 50 percent. Tariffs on permanent magnets, natural graphite, and certain other critical minerals are also set to rise to 25 percent from zero over the next couple of years.
Will lithium-ion battery imports get a tariff change?
There is also a general 3.4% tariff applied lithium-ion battery imports. Altogether, the full tariff paid by importers will increase from 10.9% to 28.4%. Lithium-ion battery modules, packs, and container blocks are generally categorized under import code 8507.6020, and it said the tariff change will likely apply to imports under this code.
Will high tariffs affect the EV industry?
But high tariffs have effectively blocked China from importing its EVs to the United States. Now, that tariff rate is jumping to 100 percent from the current level of 25 percent. Higher tariffs on batteries, semiconductors, and critical minerals could also affect the US EV industry.