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US Commerce Department Imposes 93.5% Anti-Dumping Duties on Chinese Graphite

By pushing total import penalties above 160%, the duties intensify pressure on EV makers as U.S. producers accelerate domestic capacity expansion.

Tesla Opposes Tariffs On This Key EV Battery Material: Critical Materials
Graphite powder, left, and powder made from nickel, copper and magnesium, right, which are used to make lithium-ion batteries, are displayed in the showroom of Chinese EV battery maker CATL. The United States just imposed an additional 93.5% tariffs on graphite imports from China, which could significantly raise the cost of building electric vehicles at American plants.
A 160% tariff equates to one fifth of the battery manufacturing tax credits that originated in the Inflation Reduction Act and survived President Trump’s budget bill.
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Overview

  • The preliminary 93.5% duty applies across the board to all Chinese anode-grade graphite producers, affecting imports valued at roughly $347 million last year.
  • Combined with existing 25% Section 301 and 30% retaliatory tariffs, total levies on Chinese graphite imports now exceed 160%.
  • Major EV manufacturers, including Tesla and Panasonic, lobbied against the duties, arguing U.S. producers cannot yet meet required purity and volume standards.
  • A separate countervailing duty inquiry has set preliminary subsidy duties of 6.55% for most Chinese firms and more than 700% for specific companies.
  • U.S. graphite producers are accelerating investments in domestic mining and processing capacity under Inflation Reduction Act incentives.