US Department of Commerce imposes preliminary anti-dumping tariffs of 93.5% on Chinese AAM imports

On 17 July 2025, the U.S. Department of Commerce (Commerce) announced its preliminary determination regarding dumping rates for imports of Chinese graphite active anode material (AAM) into the United States. Commerce set preliminary anti-dumping (AD) duties of 93.5% on specific importers, and 102.72% on other China-wide importers, of Chinese AAM, including AAM contained within finished lithium-ion batteries. Commerce also determined in its investigation that major Chinese battery and AAM companies were “de facto” controlled by the Chinese Communist Party and would attract the higher China-wide anti-dumping rate.

Commerce issued an initial preliminary determination on countervailing duties (CVD) on 20 May 2025 and an amended preliminary CVD determination on 27 June 2025, setting a subsidy rate of 11.58% for most exporters and ~721% for certain exporters.

AD/CVD counter non-market, subsidised supply of AAM from China and promote a fair, competitive market for Syrah and other ex-China AAM suppliers. Duties resulting from the AD/CVD investigation are expected to materially improve the competitive position of Vidalia to supply AAM, potentially driving accelerated sales commencement and expanded demand for Vidalia AAM, demand for Balama natural graphite as feedstock for both integrated and non-integrated AAM facilities outside of China and the commercial position of Syrah with customers.

Importers must now pay cash deposits at the determined AD/CVD rates on all Chinese AAM shipments into the United States. The final determinations for both the AD and CVD investigations are expected to be issued in late 2025. The Department of Commerce’s preliminary determination is available at:

https://www.trade.gov/preliminary-affirmative-determination-antidumping-duty-investigation-active-anode-material-0

Duties resulting from the AD/CVD investigation are independent of and additive to other import tariffs that are, or may become, applicable for AAM imports into the US from China. The effective US import tariff rate for Chinese AAM is currently 160% when AD/CVD is added to the U.S. Administration’s tariffs (reciprocal and IEEPA) of 30% on merchandise from China and Section 301 tariffs of 25% implemented in 2024. The final position of the U.S. Administration on reciprocal tariffs on goods imported into the US from China and other countries remain uncertain and subject to trade discussions, which are expected to continue to at least November 2025 under a recent Executive Order by the White House.

The U.S. Administration has also initiated an investigation under Section 232 covering critical mineral imported from all countries, including all graphite imports from China. This investigation could result in further trade measures on imported graphite and AAM, including the imposition of tariffs, import quotas, or other remedies.

Footnotes:

1.          July 2024–June 2025 average China export price (FOB China) of US$4,508/t plus US$100/t ocean freight rate assumed between China and USA West Coast. Source: General Administration of Customs of the People’s Republic of China.

2.          Maximum US-landed price of Chinese AAM if all tariffs are implemented.

Footnotes:

1.          See preliminary countervailing duty investigation. Certain Chinese AAM exporters are subject to preliminary countervailing duties of over 700%.

2.          See preliminary antidumping duty investigation. Certain Chinese AAM exporters are subject to preliminary antidumping duties of 102.72%.

3.          On 28 May 2025, the Court of International Trade ruled these IEEPA tariffs unlawful. A stay was issued on 29 May 2025 pending appeal, meaning IEEPA tariffs remain in effect.

4.          In April 2025, via a series of Executive Orders US ad valorem import tariffs on Chinese products were increased from 34% to 125% in response to actions taken by the Chinese Government. 

5.          There is no statutory ceiling on Section 232 duties. Section 232 tariffs on Chinese automobiles, steel and aluminum imports currently range between 25% and 50%.