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U.S. Imposes Up to 721% Preliminary Duties on Chinese Battery Anode Imports

The U.S. Department of Commerce has announced preliminary countervailing duties of up to 721% on imports of active anode material from China, citing unfair subsidies by the Chinese government. The material is a critical component in lithium-ion batteries used in electric vehicles, electronics, and medical equipment. These tariffs stem from investigations launched in response to petitions filed by American Active Anode Material Producers, who claimed Chinese imports were flooding the market due to state-sponsored overcapacity and unfair trade practices.

In February 2025, the U.S. International Trade Commission (USITC) ruled that China was selling active anode materials at below-market prices due to government subsidies. Final determinations on both anti-dumping and countervailing duty investigations are expected by November 13, 2025.

Currently, most graphite imports from China—used in anode production—face a 25% tariff. However, petitioners argue these duties are insufficient given China's aggressive export strategy and structural overcapacity. This follows the September 2024 announcement by the U.S. Trade Representative of 100% tariffs on Chinese EVs, 50% on solar cells, and 25% on EV batteries and critical minerals.

Analysts link China's battery material overproduction—now four times global demand—to industrial policies that exploit lax labor and environmental norms. The U.S. actions represent an intensifying trade front in the global competition for battery supply chain dominance.