Recently, President Donald Trump announced an anti-dumping tariff on Chinese graphite, which could significantly impact the automotive industry and electric vehicle production.
Reasons for the Tariff
The US Department of Commerce concluded that China was selling graphite in the US at unfairly low prices. The tariff will be set at 93.5%, adding to existing duties and bringing the total cost of imports to around 160%.
Automakers' Reaction
Automakers like Tesla and Panasonic opposed the new duties, arguing that local manufacturers cannot provide the required quality of graphite. Following the tariff announcement, Tesla's stock fell by 1.4%. The tariff is expected to raise production costs for standard batteries by $7 per kilowatt-hour.
Global Economic Context
This decision comes amid ongoing tensions between the US and China, which could lead to further economic ramifications. According to the International Energy Agency, graphite remains a critical material, requiring urgent efforts for supply diversification.
The imposition of the tariff on Chinese graphite has serious implications for US automakers, increasing electric vehicle prices and cutting into profits. A final decision from the Department of Commerce is expected in December.
