US Plans 100% Tariff Hike on Chinese Imports, Energy Storage Battery Tariffs May Reach 158.4%

Introduction: In October 2025, the Trump administration proposed a new 100% tariff on Chinese goods. If implemented, the total tariff on Chinese energy storage batteries exported to the U.S. could soar to 158.4%. This move would severely impact global energy storage supply chains, increase clean energy costs in the U.S., and accelerate Chinese energy storage companies' shift to emerging markets.

01 Tariff Details and Scope of Impact

According to a social media statement by Trump on October 11, the U.S. plans to impose an additional 100% tariff starting November 1. This would raise the compound tariff on Chinese energy storage batteries to over 140.9%, and further to 158.4% after January 2026. The tariffs cover energy storage cells, systems, and key materials. Combined with restrictions on "Foreign Entities of Concern" under the One Big Beautiful Bill Act (OBBBA), it is nearly impossible for Chinese companies to participate in the U.S. market through direct exports or technology licensing.

02 Cost and Supply Crisis in the U.S. Energy Storage Market

Surging Project Costs: Wood Mackenzie analysis indicates that the new tariffs could increase utility-scale energy storage project costs in the U.S. by 12%-50%. Dominion Energy reported that if tariffs remain until the end of 2026, related projects could face approximately $500 million in additional tariff costs.

Growing Supply Gap: U.S. domestic production capacity can only meet 40% of projected demand by 2030. In the short term, developers still rely on Chinese batteries. Cost increases have already led to at least 16 energy storage projects being delayed or canceled.

Korean Companies Benefit: With tax credits ( $45/kWh ) under OBBBA and lower tariff advantages, Korean companies like LG Energy Solution and Samsung SDI are expected to capture 80% of the U.S. energy storage market share.

03 Response Strategies of Chinese Enterprises

Shifting Market Focus: From January to September 2025, U.S. orders accounted for only 1.76% of Chinese companies' total overseas energy storage orders, far less than Australia (37GWh) and Japan (23GWh). Companies are accelerating expansion into emerging markets such as Southeast Asia, the Middle East, and Africa, with lithium battery exports to Saudi Arabia increasing by 2706% year-on-year.

Overseas Production Layout: To circumvent PFE (Prohibited Foreign Entity) restrictions, companies like CATL and Gotion High-Tech are producing battery materials through subsidiaries in Indonesia and Mexico. However, new capacity will only scale up by 2027.

Technology Upgrade & Domestic Circulation: Domestic policies are promoting energy storage participation in electricity spot markets. Regions like Inner Mongolia and Hebei have introduced capacity compensation mechanisms to enhance profitability.

04 Industry Outlook

In the short term, U.S. energy storage installation growth will slow due to cost pressures. Long-term, this may reshape global supply chains. China's energy storage industry needs to leverage a "dual-circulation" strategy, strengthening technological advantages and diversifying markets to offset trade barrier