Tariffs on Chinese batteries may undermine the development of energy storage and grid security in the USA.
The high tariffs on lithium-ion batteries imported from China, introduced in early April by the administration of Donald Trump, are a decision that—despite the political context—may have serious consequences for the American energy sector. Tariffs reaching 64.5% in 2025 and planned to increase to 82% the following year not only significantly raise the cost of energy storage projects but also threaten the achievement of climate goals, system security, and affordable energy for end consumers.
Energy Storage — From the Periphery to a Key Infrastructure Element
The modern power grid cannot operate without flexible resources that support it during demand peaks, balance the variable production from renewables, and minimize the need for costly investments in transmission networks. According to EIA data, 8.7 GW of new battery systems were installed in the USA in 2024—66% more than the previous year. Another 18 GW is planned for 2025.
The problem is that as much as 70% of these systems came from China—and this import is precisely what the new tariffs target. The effect? A significant increase in project costs, risks of delays, and even the need to revise or cancel projects. The most vulnerable are public utilities and independent energy producers operating in competitive markets with low margins.
Risk of Returning to Gas
The new tariffs may force short-term decisions that contradict long-term climate strategies. When rising battery prices make storage less economically viable, some companies may revert to producing energy from natural gas as a backup solution—undermining existing decarbonization plans.
Innovation Needs Scale
The impact of tariffs is not limited to investment delays. Commercial deployment of battery systems is the foundation for further innovations—from new battery chemistries, through integration with software, to the development of modular, scalable solutions. If deployment slows down, the entire technological development chain in the sector could stall.
American Production: Still Under Construction
The Inflation Reduction Act of 2022 (IRA) triggered a wave of investments in domestic battery production. The problem is that most factories are still under construction or in testing phases. Domestic producers are not yet able to meet demand, and introducing such high tariffs at this point could cause a supply shock before the market is ready for transformation.
Sequencing Needed, Not Shock
Industrial policy only makes sense if it is coordinated. It requires harmonization—developing domestic production capacity in parallel with limiting imports. Introducing trade barriers before real internal alternatives are available is a recipe for implementation collapse, loss of investor confidence, and the risk of technological regression.
What Next?
Markets are already reacting—investors are analyzing the impact of tariffs on project profitability, and suppliers are preparing for downtime. In this situation, the response of the administration and regulators will be key—whether they decide to introduce transitional mechanisms. Temporary tariff reliefs, preferences for domestic projects, or expedited construction permits could soften the effects of trade policy.
We must not forget that energy storage systems are not an add-on to the grid—they are its backbone. In an era of accelerated energy transition, the USA cannot afford a lack of flexibility, reduced reliability, or slowed technological progress. Tariffs must be part of a broader industrial strategy—not just a substitute for one.