US Considers Tariffs on Chinese Graphite Amid Battery Production Probe

The U.S. government is exploring the imposition of customs duties on graphite originating from China. This potential measure aims to address production support initiatives implemented by Beijing, which are viewed as potentially distorting fair market competition.

According to documents released by the Commerce Department, this specific customs tax could impact approximately 70 chinese enterprises. These companies might face an additional surcharge of 93.5% on their exported products.

These affected Chinese graphite suppliers are integral to the supply chains of major global corporations. Companies like American electric vehicle manufacturer Tesla, South Korea’s Samsung and LG, and Japan’s Panasonic utilize this graphite for their battery production processes.

Currently, the situation is under a preliminary investigation by the american Committee on International Trade (ITC). This inquiry was initiated following a formal appeal lodged by a sectoral producer association and several companies situated across five U.S. states.

The investigation is slated to continue until December 5.Its primary objective is to ascertain whether the targeted Chinese companies are indeed beneficiaries of substantial subsidies from the chinese government.

The total value of products imported in 2023 that fall under this scrutiny is estimated to be around $350 million, based on data from the Commerce Department. This move signifies a significant development in trade relations and the global battery materials market.

Should these customs duties be enacted, they would be along wiht the existing 30% tariff applied to a broad range of Chinese products entering the United States since mid-May. This indicates a broader trend of