The continuously increasing tariffs will definitely have a serious impact on lead-acid battery industry. Trump is totally going crazy.

 

 

I. Export Pressure in the U.S. Market and Industry Adjustments

 

Surge in Tariff Costs: Chinese lead-acid battery exports to the U.S. now face a comprehensive tariff rate of 54%, combining previous tariffs with the new "reciprocal tariffs." This has drastically increased export costs, leading to severe order losses for small and medium-sized enterprises (SMEs).

 

Blocked Transshipment Routes: Key Southeast Asian transshipment hubs (e.g., Vietnam) are subject to a 46% tariff, further limiting opportunities to bypass tariffs via third countries. Overseas Chinese-owned factories face profitability challenges.

 

II. Intensified Competition in Southeast Asia and Supply Chain Restructuring

 

Relocation of Production Capacity: To counter high tariffs, domestic companies are accelerating factory construction in Southeast Asia. However, rising labor and resource costs in the region erode cost advantages, diverting some orders to more technologically advanced international competitors.

 

Decline in Export Volume: Due to high domestic lead prices and currency fluctuations, lead-acid battery exports fell by over 15% year-on-year in the second half of 2024, with localized Southeast Asian production further diverting orders.

 

III. Domestic Market Transformation Driven by Policy and Consolidation

 

Domestic Demand Cushion: Stable demand from China’s automotive and energy storage sectors—bolstered by the country’s global-leading automobile production in 2023—partially offsets export declines. However, the rise of new energy vehicles is gradually displacing traditional lead-acid batteries.

 

Tighter Environmental Policies: Stricter regulations on battery recycling and pollution control accelerate industry consolidation. SMEs are exiting the market, while leading enterprises improve efficiency through automation (e.g., achieving a 66% operating rate in primary lead smelting), driving higher industry concentration.

 

Trump’s tariff policies have intensified short-term challenges for China’s lead-acid battery industry. However, resilient domestic demand, policy support, and technological upgrades provide opportunities for transformation. Future competition will focus on innovation and globalized supply chains, with leading players poised to solidify their dominance amid industry restructuring.