The U.S. plans to impose a 93.5% tariff on Chinese graphite.

The U.S. Department of Commerce announced that day that it would impose a 93.5% anti-dumping duty on anode-grade graphite imported from China. Combined with existing tariffs, the effective duty rate could reach as high as 160%. The department stated that these materials were being sold in the U.S. at prices below fair market value.

The tariff applies to anode-grade graphite material with a minimum purity of 90% carbon content by weight, a key material for power batteries. The International Energy Agency (IEA) noted that graphite is expected to remain the dominant anode material for all types of lithium-ion batteries in the medium term, while silicon-based materials are projected to gradually gain market share only after 2030.

Based on 2023 import volumes, the new tariff measure will affect approximately $340 million (around 2.44 billion yuan) worth of imported products. According to BloombergNEF data, the U.S. imported 180,000 metric tons of graphite products last year, with two-thirds sourced from China. The IEA also stated that graphite is among the critical minerals facing potential supply risks.

In May of this year, the U.S. Department of Commerce launched a separate countervailing duty investigation targeting China's anode-grade graphite materials, asserting that these imported Chinese graphite products benefited from "unfair subsidies."

Since President Trump took office earlier this year, the United States has consistently intensified export controls on China's critical minerals and battery technologies. Concurrently, it has sought to reduce dependence on Chinese goods and technologies by scaling back investments in electrification initiatives. Some analysts suggest that this latest increase in graphite tariffs may represent another step in this broader strategy.

Sam Adham, head of battery materials at consultancy CRU Group, stated that the U.S. tariffs on Chinese graphite products would deal a significant blow to battery manufacturers. He analyzed, "The 160% tariff would effectively add an average of $7 (approximately 50.2 yuan) per kilowatt-hour to automotive battery production costs. This amount could erode one to two quarters' worth of profits for battery makers."

It is worth noting that when the American Active Anode Material Producers Association first proposed this investigation earlier this year, foreign media had already warned that increasing tariffs on imported anode materials could deal a heavy blow to companies like Tesla, Panasonic, and other manufacturers that rely on these materials for producing power batteries and electric vehicles in the United States.