Tariffs on imported lithium battery packs from South America

Why are Chinese lithium batteries being tariffed in US-China trade?

Additional tariffs imposed under recent trade actions push the total tariff on Chinese lithium batteries to approximately 82% by 2026. These tariffs are part of a broader strategy to reduce U.S. dependence on Chinese battery imports and encourage domestic production. Part 2. Why are lithium batteries necessary in U.S.-China trade?

Which countries import lithium-ion batteries?

Lithium-ion batteries power various technologies, from smartphones to electric vehicles and grid storage. China dominates the global lithium battery supply chain, producing over 75% of the world’s lithium-ion battery cells. The U.S. imports nearly 70% of its lithium batteries from China, making tariffs on these products highly impactful.

Are lithium-ion batteries exempt from tariffs?

However, lithium-ion batteries are not exempt. On August 1, 2024, lithium-ion batteries used in electric vehicles imported from China incur a 25% tariff, up from 7.5%. Battery parts from China, including cathodes, anodes, separators, electrolytes, battery management systems, and thermal interface components, are also subject to the 25% tariff.

Can I import a lithium-ion battery?

However, there may be additional import tax and minimum threshold rules for this item. Please use our Landed Cost Calculator to get a full breakdown of the import duty, sales tax and any additional import charges payable on your import. You can also use our HS Lookup tool to get the full length HS code for your lithium-ion battery.

Will Germany impose a duty-free tariff on lithium-ion batteries in 2025?

This overrides its duty-free access for batteries, unless clarified otherwise. Germany, Poland, and Hungary, all EU members, will see the 10% baseline tariff as of April 5, 2025, increasing to a 20% reciprocal tariff on lithium-ion batteries starting April 9, 2025, stacked on top of the existing 3.4% MFN rate, totaling 23.4%.

What happens if you import lithium batteries from China?

At minimum, such imports from China could result in a tariff exceeding 145% ad valorem. This tariff, whatever it may be when you import your lithium batteries, will be added on to Section 301 tariffs. Due to how expensive it is to import from China, you’ll either need to budget accordingly or find a supplier in another country.