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China is the dominant global manufacturer of nearly all clean energy products, but some U.S. sectors depend much more on China than others. The Americans who install solar panels won’t be especially worried by the new tariffs—at least not more worried than they already are by U.S. trade barriers.
The China tariffs will have a much greater impact on the U.S. battery industry. American utilities have been adding batteries to their grids at record rates, and many of those are lithium-iron-phosphate (LFP) batteries from China. There is essentially no alternative production capacity ready to replace these imports.
In 2024, U.S. EV manufacturers were able to meet most of the demand for lithium-ion batteries in vehicles with domestic production. The top issues for them now are not the China tariffs but the global tariffs on steel and aluminum and on certain cars and car parts from Canada and Mexico.
Before President Donald Trump’s trade war, the administration of former president Joe Biden had already imposed 50 percent tariffs on Chinese solar imports, and the major exporters of solar panels and cells were already facing steep duties—for example, 274 percent on imports from Vietnam, the biggest supplier of solar panel imports in 2024.