Background on Chinese Tariffs and Batteries/Electronics

Tariffs have been imposed by the USA for batteries and electronics manufactured in China for several years. Beginning in 2018, these were imposed via the broad Section 301 tariffs on numerous Chinese imports to the USA. Overall Section 301 tariff rates adjusted over time and based on products, but President Trump began imposing them at about 7.5% – escalating up to 25% on different items.

A Section 301 tariff is a trade measure authorized under the Trade Act of 1974 that allows the USTR to impose duties or restrictions on foreign countries engaging in “unjustifiable” or “discriminatory” practices that burden U.S. commerce. Created in 1974, it enables unilateral U.S. action against unfair trade practices. In the last decade, it has been most used against China.

According to the Biden Administration, Section 301 tariffs on lithium-ion related batteries and products were at about 7.5% from 2020-2023. Meanwhile, lithium-ion related battery cells and packs have had a base Harmonized Tariff Schedule (HTS) classification of between 2.7 to 3.4% for several years at port just for the U.S. Customs and Board Protection (CBP) to handle the items safely.

Due to surges in the electric vehicle (EV) industry, combined with strikes and complaints from the U.S. manufacturing community, the Biden Administration increased section 301 tariffs on lithium-ion related batteries and other electronics to 25% for electric vehicles only, but allowed companies to apply for exclusions with USTR from October 2024 to March 2025 via online portal. Battery parts and components generally were supposed to experience a 25% tariff in 2024. However, some products were not supposed to face this 25% tax until 2026 if they were being used for energy storage or consumer electronics.

On April 2, 2025, the Trump Administration declared a “Liberation Day,” adding a general 10% on all imported goods under the IEEPA as well as countervailing duties (aka reciprocal tariffs). What this meant for some companies was potentially 3 stacked tariffs: Section 301, IEEPA, and countervailing duties. For example, some battery U.S. companies were facing in April 2025 a 10% IEPPA tariff, a 60-90% countervailing duty (reciprocal tariff), and a 25% section 301 tariff to important Chinese batteries. Some companies reported paying almost a 150% tariff rate.

Meanwhile, the tariff relief business in Washington has been marred by lack of transparency, as the Section 301 application portal was removed, various law and lobbying firms are claiming to have achieved tariff relief for clients, and different businesses fight for their own exclusions, while industries fight for broad waivers. Just last week, Secretary Duffy of the U.S. Department of Transportation requested input on revoking the 2023 Buy American waiver for EV charging products.