Recently, US President Donald Trump announced the "Liberation Day" tariff policy. According to Energy-Storage.news, the policy will double the price of batteries and battery energy storage systems imported from China.

Before the final tariffs were announced, the entire battery storage manufacturing industry had already begun to move to countries where lower tariffs could be avoided or applied.

However, the new tariffs stipulate that Vietnam will face tariffs of 46%, Thailand 36%, Taiwan 32%, Cambodia 49%, Malaysia 24%, and Indonesia 32%.

China has been subject to new tariffs in two 10% increments on top of the 20% tariffs previously announced by Trump.

China has responded with retaliatory tariffs after the tariffs were announced. Donald Trump announced that he would impose a 104% counter-tariff on goods imported from China.

If the 104% tariff takes effect, Chinese-made batteries and energy storage systems will face a cumulative tariff of 186% from January 1, 2026.

In addition to tariffs, developers must also consider the uncertainty of the investment tax credit policy of the Inflation Reduction Act.

Immediately after taking office, Trump signed the "Unleashing American Energy" executive order, which directly targeted the clean energy policy of the Biden era.

The order requires an ongoing evaluation of government agencies and funds that support U.S. battery procurement and manufacturing. The full impact of the order is not yet clear, but there is a possibility that the tax credit policy will be phased out.

Faced with growing energy demand, developers need to consider many uncertainties and additional costs.

How do tariffs change developers' existing strategies or cause new problems?

Before the introduction of reciprocal tariffs in April 2025, most energy storage suppliers maintained stable prices due to overcapacity in the supply chain despite the new tariffs on Chinese products. However, as suppliers fully incorporate the new tariffs into their pricing systems, we expect energy storage system prices to rise in the short term.

In terms of strategy, it is more important than ever to have full supply chain information and closely track price trends when planning and purchasing projects. Understanding where products are made, production cycles, supplier terms and conditions, and comparing market price levels can make a big difference between locking in the best deal and being exposed to unexpected counterparty risk.

In terms of project announcements, we have noticed more activity in states that are usually less active. Do you think this is related to tariff concerns or the possible elimination of the investment tax credit (ITC)?

The increase in energy storage projects in these regions is mainly due to the high local solar installation rate, and energy storage system provides flexibility for grid operation. However, compared with states with clear energy storage incentives such as California or Texas, the project progress in these regions is still slower.

Uncertainty about tariffs, investment tax credits, and other policies is weighing on investment decisions. In states without strong incentives, these risks are weighing heavily on project developers. If the investment tax credit is eliminated, project costs will increase by 30%, which is a major consideration for local developers.

Developers are waiting for clarity on issues such as the ITC and potential tariffs. Unlike major markets where the benefits of energy storage system are clear, uncertainty in these emerging markets is delaying final project decisions.