he U.S. and China have agreed to temporarily cut tariffs on each other’s imports, boosting the battery industry through the ongoing uncertainty.

With most supply coming from China, the industry has been given support, with U.S. Treasury Secretary Scott Bessent saying both countries would lower their reciprocal tariffs by 115% for 90 days, after joint trade talks in Switzerland.

The White House posted a joint statement from the countries confirming the news.

U.S. President Trump had imposed a 145% tariff on Chinese imports, while Beijing responded with a 125% levy on some US goods.

The U.S. tariffs on Chinese imports will now be cut to 30% for 90 days, while Chinese tariffs on US imports will be cut to 10% for the same period of time.

The exact tariff on battery energy storage system (BESS) imports from China to the U.S. was a contentious issue. Previously, industry authorities like Daniel Finn-Foley of Clean Energy Associates (CEA) were attempting to understand the exact quantity of the tariffs, which may have been as high as 245% if all possible elements had been included.

The reprieve may prove especially useful given signs that existing inventory had insulated against possible adverse effects from tariffs via stockpiling. CEA observed that lithium-ion battery imports into the US from China surged 10% from Q4 2024 to Q1 2025, with Finn-Foley saying:

“We may see some pullback [in project build out], but there’s enough capacity there so we are going to be insulated a little bit, meaning developers can ride it out until the new tariff landscape becomes clear,” said Finn-Foley.