920% Tariff on graphite from China? Musk vs America first

The U.S. International Trade Commission (USITC) has approved an investigation into Chinese graphite imports, marking a turning point in the fight to support local producers and reduce reliance on China. This decision signals the beginning of a major shift in the graphite industry, with the U.S. government likely to back domestic production through policy measures, incentives, and tariffs. Tesla, led by Elon Musk, opposes the proposed 920% tariff, arguing that it will drive up costs for EV batteries and disrupt production. However, Tesla might still negotiate concessions, potentially securing a middle-ground agreement that balances tariff increases with supply chain flexibility. Meanwhile, U.S.-based graphite producers like Syrah Resources stand to gain the most as the tides turn in their favor. With local supply chains gaining priority, Syrah’s Vidalia plant in Louisiana could become a key beneficiary, securing contracts with EV manufacturers and strengthening the U.S. graphite supply chain. While Tesla may win some exemptions, the broader trend is clear: the U.S. is shifting away from dependence on Chinese graphite, and domestic producers are finally getting the backing they’ve been waiting for. The real battle is just beginning.