New tariffs on goods imported into the US have significant implications for the battery industry. As of 2023, China produced over 75% of the world’s lithium-ion battery cells. The US imported $4 billion worth of these batteries from China in the first four months of 2024, with nearly 70% of its lithium-ion battery imports coming from there. A new 34% tariff on Chinese goods, combined with an existing 20% tariff, results in a total of 54%. An additional retaliatory tariff has raised this to 104%. Specifically for batteries, there’s a 3.5% tariff on all lithium-ion batteries and a 7.5% tariff on batteries from China, set to increase to 25% next year. This could lead to an 82% tariff on lithium-ion batteries from China by 2026, or even 132% with the retaliatory tariff. These high tariffs will likely increase the cost of electric vehicles, grid storage, and other rechargeable devices. Despite potential benefits for US battery makers, the industry faces challenges due to China’s dominance in battery supply chains, producing 80% of cathode materials and over 90% of anode materials.
Flower03
@Waterfall0910
·
Apr 6 The White House continues to lie about the severity of the impact but it will be bad, really bad. From coffee to clothes, this is going to be painful and it is doubtful it will be successful. It’s also certain to bring about a recession.
Carlos
@agent_of_change
·
Apr 5 “Tariffs will substantially increase prices—US consumers will bear the brunt on a wide variety of basic foods and essential goods that physically cannot be produced domestically, with the poorest households being hit the hardest. American industry will struggle with higher costs
etirol 𝕊
@MEtirol
·
Apr 9 Economic fallout looms. Economist Brad Setzer likens 104% tariffs to a $160 oil price shock. US small businesses, reliant on China, face bankruptcy or layoffs as costs soar. Apple’s $70B China sales? At risk as Beijing could turn patriotic buyers against it.
Tahra Jirari
@tahrajirari
·
17h We can’t reshore this supply chain overnight and as a result, consumers will face major price hikes due to both supply shortages and the steep new tariff. A 125% tariff makes it nearly impossible to engage in trade and would have ripple effects across the economy.
Atlas
@crptAtlas
·
Apr 3 ➠ 9◈ Economists voiced strong concerns about the impact of the new tariffs◈ They warned of rising consumer prices and renewed inflationary pressure◈ Many companies expressed concern over supply chain shocks and cost hikes◈ Financial markets braced for turbulence as
Perfect RealEstate Investments
@adathakkar
·
22h MASSIVE TARIFFS NOW ACTIVE Expect MAJOR price hikes (electronics, clothes, etc.) & severe inflation. Supply chains scrambling. #ChinaTariff #TradeWar #InflationAlert #USEconomy #BreakingNews
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