BUSINESS

U.S. Tariff Cut Offers Hope for Revival in China’s Lithium Battery Exports

Published: May. 13, 2025 6:24 p.m. GMT+8

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Decline in duties on EV batteries to 58% could lead to a rebound in Chinese exports. Photo: AI generated

Chinese lithium battery exporters welcomed the move by the U.S. to roll back punitive tariffs, potentially reviving shipments to one of the industry’s most important markets.

Following trade talks in Geneva over the weekend, Washington and Beijing on Monday released a joint statement to significantly lower the reciprocal tariffs imposed on each other. The U.S. will cut its tariffs imposed on China to 30% from 145% for a period of 90 days, while China’s tariffs on the U.S. will be lowered to 10% from 125% for the same period.

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The U.S. and China agreed to significantly lower reciprocal tariffs, cutting U.S. tariffs on Chinese lithium batteries for vehicles from 173.4% to 58.4%, and for non-vehicle-use from 156% to around 41% for 90 days.
The U.S. is China’s largest lithium battery export market, totaling $15.3 billion in 2024 (25% of China’s exports), but Germany temporarily overtook the U.S. in February 2025.
Despite tariff reductions, Chinese battery companies remain cautious about U.S. investment due to policy uncertainty and past trade tensions.

AI generated, for reference only

Who’s Who

Tesla: The article does not mention Tesla directly. However, as a major U.S. electric vehicle producer, Tesla could be impacted by lower tariffs on Chinese lithium batteries, possibly benefiting from reduced costs for battery imports if it sources from China. The tariff rollbacks may also affect market dynamics for Tesla and other U.S. automakers using Chinese batteries in their products.

Panasonic: The article does not mention Panasonic directly. However, it notes that Japanese battery makers (like Panasonic), as well as South Korean and Taiwanese counterparts, have accelerated local production plans in the U.S. due to trade tensions and tariff uncertainty, unlike Chinese firms who remain cautious about building factories there.

Samsung SDI: The article does not mention Samsung SDI. It only notes that Japanese, South Korean, and Taiwanese battery makers are accelerating local production plans in the U.S., without specifying companies.

LG Energy Solution: The article does not mention LG Energy Solution specifically. It references Japanese, South Korean, and Taiwanese battery makers accelerating U.S. production plans but provides no details about LG Energy Solution’s actions or position regarding the U.S.-China lithium battery tariff changes.

AI generated, for reference only