WASHINGTON, D.C.: Former US president Donald Trump has announced an additional 10% tariff on Chinese goods, including batteries and battery energy storage systems (BESS). This comes on top of a previously announced tariff hike, raising concerns about the cost of energy storage in the US.
Trump made the announcement on Truth Social on February 27, stating that tariffs on China and 25% on Mexico and Canada will take effect on March 4. In addition, China will face another 10% tariff in April. The move, he claimed, is aimed at reducing the import of materials linked to fentanyl production, a major issue in the ongoing opioid crisis.
According to Energy-Storage.news, these tariffs will increase the total levy on Chinese battery products to 48.4% by January 2026. This includes:
• A 3.4% global tariff on all battery goods.
• A Section 301 tariff on Chinese batteries, set to rise from 7.5% to 25% in 2026 (already applicable to EVs).
• The two 10% tariffs announced by Trump.
This will have a significant impact on the BESS sector, which relies heavily on Chinese lithium iron phosphate (LFP) cells. In 2024, 90% of BESS products in the US use Chinese LFP batteries, compared to less than 10% in the EV market, according to Rho Motion analyst Iola Hughes.
While Trump’s tariffs aim to boost US manufacturing, data from BloombergNEF suggests that China still has a 60% cost advantage in BESS and 31% for battery packs. Some sources suggest an even greater gap.
China vows to retaliate
China’s Ministry of Commerce strongly condemned U.S. President Donald Trump’s latest tariff threat on Friday, warning of potential retaliation if necessary.
“If the U.S. continues down this path, China will take all necessary countermeasures to protect its legitimate rights and interests,” a ministry spokesperson stated, according to a CNBC translation.
The ministry urged the U.S. to “avoid repeating past mistakes” and to “return to the right track of resolving conflicts through equal and fair dialogue as soon as possible.”
