The U.S. Commerce Department has proposed a steep 93.5 percent tariff on Chinese graphite, a critical component in electric vehicle batteries. This move comes amid growing concerns over the country’s reliance on foreign suppliers for essential materials, particularly in the rapidly expanding electric vehicle sector. China currently supplies nearly all of the refined graphite used by major automakers, including Tesla, to produce batteries for electric cars.
Industry experts have warned that the proposed tariff could lead to higher production costs for U.S. manufacturers, potentially affecting the competitiveness of electric vehicles in the global market. While the administration argues that the tariff is necessary to bolster domestic industry and reduce supply chain vulnerabilities, critics say it may backfire by driving up costs for consumers and limiting innovation in the sector.
The decision reflects broader geopolitical tensions between the U.S. and China, with trade policies being used as a tool to influence economic and technological competition. As the debate continues, stakeholders in the automotive and energy sectors are closely monitoring the potential impacts of the proposed tariff on both domestic and international markets.