The American Clean Power Association (ACP) has expressed approval for the Biden Administration's move to impose Section 301 tariffs on lithium-ion batteries imported from China, doubling the tariff rate to 50%. The tariffs will encompass a broad spectrum of Chinese imports, including semi-conductors, batteries, electric vehicles (EVs), and solar cells, with implementation staggered between 2024 and 2026.
ACP's Chief Executive, Jason Grumet, emphasized the significance of battery energy storage for grid reliability, stating, “Today's decision recognizes the value of battery energy storage and its importance to the reliability of our electric grid.”
Grumet added, “As energy demand grows, battery energy storage is lowering costs for American families and businesses. Moreover, this emerging industry is building new manufacturing facilities and bringing thousands of jobs to communities across the United States.”
Meanwhile, the announcement has sparked concerns about potential disruptions and increased costs within the global supply chain. Chief Analyst at Xeneta, Peter Sand, highlighted the historical precedent and potential consequences of such tariffs, remarking, “The new tariffs under President Biden may be a case of history repeating.”
Sand elaborated, “If so, businesses will be braced for increasing supply chain costs and ultimately it will be US consumers who pay for it.”
He also noted the possibility of shifts in supply chain routes, with increased demand for container shipping imports from China into Mexico, suggesting that some shippers may view it as a potential alternative route into the US.
Sand concluded, “However, these are immature supply chain routes compared to the established Transpacific trade direct from China to the US West Coast. This means more complexity, more volatility, and increased cost.”
