US Imposes 93.5% Anti-Dumping Tariff on Chinese Battery Anode Products The US Department of Commerce has provisionally decided to impose anti-dumping tariffs of 93.5% on active anode material (AAM) product imports from China, bringing the total tariff on these products to 160%. The preliminary determination was made on July 17, 2025.

Tariff Details and Scope

The new tariff follows a petition brought by the American Active Anode Material Producers (AAAMP) in December 2024, which had requested much higher anti-dumping and countervailing duty tariffs of 828-921% to be placed on AAM imports. 

The 93.5% rate represents a significant reduction from the originally requested amount. The tariff applies to AAM contained within finished batteries but excludes finished battery energy storage system (BESS) products. 

According to market intelligence firm Rho Motion, this means US BESS manufacturers and system integrators will be affected if they import batteries from China, but Chinese BESS manufacturers shipping finished products will not face the tariff. A final ruling is scheduled for December 5, 2025, and the tariff rate could change before then.

Market Impact and Cost Analysis

The ruling affects nine main AAM producers, with their key customers in the US including Tesla, Panasonic, SK On and Samsung SDI. Rho Motion estimated that the tariff increases the effective import cost of Chinese AAM from $3,700 per tonne to $9,300 per tonne. 

By comparison, US-made AAM costs around $5,400 per tonne, making domestic material over 40% cheaper than the tariffed Chinese imports. The 160% total tariff includes previously-announced battery-specific and general China tariffs.

Industry Response and Strategic Context

Michael O'Kronley, CEO of AAAMP member Novonix, responded to the decision by stating: "The decision today underscores the strategic importance of building a domestic supply chain for critical minerals, including synthetic graphite, in North America." 

Novonix operates a synthetic graphite manufacturing facility in Chattanooga, Tennessee, and was among the companies that requested the tariffs. The move is part of the US aim to build up its own battery manufacturing industry, as China currently dominates the global lithium-ion battery market. 

Despite the Trump administration's anti-clean energy stance reflected in the recently-passed One Big Beautiful Bill tax reconciliation legislation, it appears to have accepted that batteries and BESS represent a strategic industry crucial to a reliable electricity grid.

Policy Framework and Limitations

The tariffs complement other measures including largely maintained tax credit incentives for batteries and BESS, plus new rules limiting technologies in projects from foreign entities of concern (FEOC). 

These policies are theoretically designed to boost US manufacturing industry capacity. However, the US ability to build a supply chain completely separate from China faces significant limitations, as a substantial portion of the supply chain for upstream components and downstream materials is based in China. 

China has recently responded with its own restrictions on exporting battery technology and expertise. The tariff decision comes as the Trump administration maintains support for battery and energy storage technologies as strategic industries, despite broader opposition to clean energy initiatives.