US to Impose 93.5% Tariff on Graphite From China

The Commerce Department has initiated preliminary antidumping duties of 93.5% on graphite imports from China, classifying the material as unfairly subsidized. This action follows petitions from a U.S. graphite producers' trade association that accused Chinese companies of violating antidumping laws. The new duties, combined with existing tariffs, bring the total effective tariff to 160%. A final ruling is expected by December 5.

In terms of the transportation sector, this move could have significant implications for battery production, particularly as the demand for electric vehicle (EV) batteries rises. Higher costs for graphite, an essential battery material, could lead to increased prices for EVs and other technologies relying on these batteries. This may slow down the transition to clean energy vehicles, which relies heavily on a stable and cost-effective supply chain for raw materials. Enhanced domestic production capabilities, as seen with new plants like the one announced by Birla Carbon in South Carolina, could mitigate some of these impacts, fostering a more resilient supply chain in the long term.