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April 2, 2025 update: Latest tariffs & impact to solar and storage product strategy

Updated April 8, 2025

As anticipated, the change in presidential administration has come with new tariffs and adjustments to start 2025. After a scattered few tariff announcements in early 2025, April 2nd brought sweeping additions of at least 10% on all imports to the United States. Which countries received the highest rates and how will this affect solar and energy storage product prices? Let’s look at the current tariff landscape and rates and revisit other supply chain risks that may be coming so you can best navigate the market.

Tariff timeline: where things stand today

As U.S. manufacturing continues to ramp up, the renewable energy industry relies on an extensive global supply chain heavily focused on Asia to supply necessary products and materials to meet the growing market demand. With additive tariffs and duties on materials from a long list of countries, purchase prices can quickly climb. Here’s an overview of current tariffs and what options are left to limit tariff exposure.

April 2nd Universal and Reciprocal Tariffs

On April 2, 2025, an Executive Order was issued utilizing the authority of the President under the International Emergency Economic Powers Act of 1977 (IEEPA). This announcement places a baseline 10% tariff on all goods in effect April 5, with a higher individualized rate for 60 countries starting April 9. These new tariffs exclude imports from Canada and Mexico compliant with the USMCA free trade agreement. Additionally, products which leave port before April 5 (for 10% tariff) and April 9 (for individualized country tariff rates) are not subject to the new tariffs.

Looking more closely at countries with solar and energy storage manufacturing and assembly, the announced tariff rates are:

  • China 84%
    • An initial 10% tariff on all imports from China took effect on February 4, 2025, and increased to 20% as of March 4, 2025. Chinese origin goods are subject to both this new customized tariff of 84% plus the previously announced 20% tariff, bringing the total IEEPA rate to 104% for all Chinese imports.
  • Cambodia 49%
  • Laos 48%
  • Vietnam 46%
  • Thailand 37%
  • Taiwan 32%
  • Indonesia 32%
  • India 27%
  • South Korea 26%
  • Malaysia 24%
  • European Union 20%
  • Jordan 20%
  • Turkey 10%
  • Egypt 10%
  • Morocco 10%

It is critical to note that both the 10% universal and custom country-specific rates are additive to any previously existing tariffs, such as Section 201 or 301 and any AD/CVD rates. There are a few notable exceptions. Products that are already subject to other Section 232 tariffs, such as the 25% steel/aluminum tariff, or may become subject to future Section 232 will not be subject to these reciprocal tariffs. In these scenarios, the Section 232 tariffs would sit in place of the universal or reciprocal tariff rates.

These announced tariff rates are not set in stone. Many countries will take steps to negotiate and address concerns from the U.S. government, leading to lower rates and/or exclusions over time. Other countries may retaliate, resulting in higher rates that could be implemented quickly.

Section 232 – Aluminum & Steel

Trump also previously utilized Section 232 of the Trade Expansion Act to implement a 25% tariff on all steel and aluminum imports, effective March 12, 2025. This announcement ended any previous country-specific exemptions and added additional derivative steel and aluminum products to the tariff. If a product is included on the derivative products list for steel or aluminum, then the importer must pay the aluminum and/or steel tariff. However, if an importer can substantiate how much the aluminum or steel costs with respect to the overall product costs, they can pay the tariff on only the subset of costs for the aluminum and/or steel.

This tariff has had minimal impact on solar and storage so far. The only related derivative product included in steel tariffs is empty BESS containers only if shipped separately. However, it is unlikely any vendor will ship these containers individually and not as a completed product. It’s important to note that domestic steel and aluminum producers can weigh in on additional derivative products to include on the list, which likely will lead to more product additions over time. Our experts are watching this closely for new developments that are critical for mitigating long-term risks.

Other Existing Tariffs & Duties

Section 201

This tariff affects bifacial modules with cells not originating from an exempt country. It has a set tariff rate of 14.25% from February 7, 2024, to February 6, 2025, and 14% from February 7, 2025, to February 6, 2026, ahead of the scheduled tariff expiration date of February 7, 2026. Exempt countries include Canada, Cambodia, Jordan, and Indonesia. 

Section 301 – Solar

This 50% tariff, announced in May 2024 and taking effect September 27, 2024, applies to solar cells from China (whether or not assembled into modules). Additionally, solar wafers and polysilicon from China also have a 50% tariff that went into effect at the start of 2025.

Section 301 – Storage

Also announced last year, the tariff rate on lithium-ion non-EV batteries, i.e. ESS products, and natural graphite (anode materials) from China is set to increase from 7.5% to 25% in 2026. The tariff rate on battery parts from China previously increased from 7.5% to 25% on September 27, 2024. 

AD/CVD cases

There are also two open AD/CVD cases impacting materials from Southeast Asia and China:

Other risks to keep in mind

In addition to the known tariff announcements and adjustments, there are also several other risks on the horizon involving the solar & storage supply chain, including:

Impact on 2025 pricing so far & steps to take now

Despite the early 2025 tariffs, existing import fees from 2024, and general market uncertainty we saw only moderate shifts in pricing to start the year. In our recent Q1 2025 Solar Module Pricing Insights Reports, data through February 2025 showed a modest 2% increase in median module pricing since November. Energy storage equipment pricing remained steady from December to January, however, we did see an increase in average pricing of around $10/kWh from January to February 2025 after the new China tariffs were introduced.

The new universal and reciprocal tariffs are likely a turning point for solar module and BESS product pricing. So far in 2025, many storage suppliers have held steady on pricing despite the new China tariffs due to the overcapacity throughout the supply chain. Similarly, many major solar module suppliers imported a high volume of product inventory at the end of 2024 to get ahead of new tariffs and offer a fixed price. As this previously imported solar module inventory is depleted and suppliers fully incorporate the new tariffs into pricing, we’re anticipating pricing increases for both solar modules and energy storage systems in the near term.

As we mentioned earlier, the newly announced reciprocal tariff rates are likely to change in the near term, making it increasingly difficult to pinpoint the lowest risk options for procurement. Chinese materials, with the 54% IEEPA tariff rate coupled with Section 201 & 301 tariffs, are the hardest hit. Other Southeast Asian countries such as Cambodia, Malaysia, Thailand, and Vietnam, that are already subject to AD/CVD rates also are highly affected by the reciprocal tariffs, with rates from 24% to 49%. It’s likely that Chinese and Southeast Asian manufacturers will attempt to shift their production to countries with lower tariff rates.

Right now, the lowest risk option for solar equipment buyers is to purchase domestically produced cells or cells manufactured from countries with lower tariff rates, such as Turkey. India also may be an attractive option for cells and modules with the relatively lower 27% tariff rate and no current AD/CVD duties, though this could change. While on the surface Indonesia’s 32% tariff rate is high compared to the 10% universal tariff, the country’s exemption from Section 201 bifacial module tariff also makes it an attractive option compared to many other importing countries.

For storage equipment buyers, domestic content options are also the lowest risk option at this time. With BESS manufacturing still heavily reliant on Chinese materials, finding non-Chinese materials will be critical to avoid the high reciprocal tariff in addition to the Section 301 tariffs already in effect and set to increase. For 2026 deliveries, several suppliers will have Southeast Asian manufacturing capabilities, which while facing reciprocal tariffs ranging from 24% to 46%, may still be a better option than China-based suppliers.

As the market reacts to these new tariffs and supply chain risks, Anza is here to help you understand the intricacies of the dynamics at play. Now more than ever, it’s crucial to have visibility into your supply chain and keep a close eye on how pricing is trending when planning your developments and procurements. Knowing product manufacturing location, terms available from a supplier, and how pricing stacks up against the rest of the market can make a massive difference between locking in a great deal and being stuck with unexpected counterparty risk. 

While market analysts and consultants may try to predict how pricing will shift due to these tariffs, only Anza has the data available on-demand to help developers and equipment buyers. Our up-to-date, market-wide information directly from suppliers gives you visibility into pricing, manufacturing location, and commercial terms to help you quickly respond as the market changes. Easily find U.S. manufactured products or non-Chinese options and receive support completing thorough supplier due diligence to help you lower the risk of unforeseen costs or delays. Ensuring your contractual protections are up to standard is crucial to avoid new issues as they emerge.

Curious about how Anza can help you evaluate risk for your upcoming projects so you can navigate the market with certainty? Schedule a demo with our team today to learn more about how Anza can help you meet your risk-reward goals.

Anza Team

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