The United States has come to make things, one after another, and at the same time as announcing the launch of the 301 investigation on the Chinese chip industry, it will impose a tariff of up to 920% on the battery metal supplied by China. "The United States launched a 301 investigation on China's chip industry related policies, the Ministry of Commerce responded!"
On Dec. 19, the American Active Anode Material Producers, a group of graphite producers from the United States and Canada, called on the U.S. Department of Commerce and the U.S. International Trade Commission to investigate whether China is charging unfair prices, Exports natural and synthetic graphite to the United States.
The administration's decision on whether to impose tariffs will be made after the investigation is completed, and the results will not be available until mid-2025, after Trump takes office.
Shun Xin Logistics learned that in 2023, the United States imported more than 91,000 tons of graphite, of which nearly 70,000 tons came from China, accounting for nearly 80%. If the U.S. government shuts out Chinese graphite, relying only on domestic graphite producers, the production cost of final products using graphite will double.
Graphite is the main raw material for the manufacture of batteries, so the rise in the price of graphite will significantly increase the cost of battery production, especially the cost burden of the US electric vehicle industry.
The United States is going after graphite because investment in domestic graphite production has accelerated, and the Department of Energy has approved a $755 million loan for companies producing synthetic graphite to support battery supply for the U.S. electric vehicle industry and reduce reliance on Chinese graphite.
In his first term, Mr. Trump imposed a 25 percent tariff on synthetic graphite from China. At the time, Tesla was granted immunity on the grounds that it "would harm Tesla's competitive advantage." In February, Tesla again requested an extension of the waiver, citing "failure to find alternatives to Chinese graphite."
The investigation is being conducted jointly by the Commerce Department and the ITC, and if the investigation finds that China's actions are true, the Commerce Department could impose additional tariffs to offset the alleged unfair subsidies. According to the alliance statement, some experts believe that anti-dumping duties should reach the level of 920%. Although a final ruling may not be completed until the end of 2025, from the initial ruling, there is a possibility that the tariffs will take effect earlier during the investigation.
In fact, the United States this means of concealing evil intentions is nothing more than trying to suppress the market share of China's graphite through high tariffs, which is not only a simple trade dispute, but also a deep game of technology and industry.
However, China has strict censorship rights in graphite exports, which also directly controls the lifeblood of the United States in the technology field, and it is clear that once China tights exports, the cost of battery manufacturing in the United States will soar, causing a major blow to the entire American economy.