Contributed by Jenny Pham, MS, Bimergen Analyst

In early 2025, reciprocal tariffs have prompted mixed reactions across industries, including renewed concerns from investors about potential cost escalations in the energy storage sector. However, amid rising scrutiny over trade policy, Supply Chain Drive reported in April 2025 that energy products, among other key imports, would be exempt from the reciprocal tariffs. These tariffs were introduced as part of a broader trade recalibration, imposing a 10% baseline on all imports, with additional duties reaching as high as 145% for Chinese-origin goods.^[1] According to the IEA, China accounts for over 85% of global lithium-ion battery cell production capacity.^[2] Given this statistic, it is understandable that initial reactions across markets and BESS stakeholders have been one of caution. Thus, news of the exemption offers huge implications for the renewable industry, helping to de-risk project investments, stabilizing market sentiments, and reinforcing momentum for the BESS sector.

A closer look at current tariff structures conveys a nuanced reality—one that highlights the continued viability of energy initiatives across the U.S., including Bimergen's battery energy storage pipelines. According to Supply Chain Drive, official documents released by the U.S. Trade Representative reveal a breakdown where a substantial amount of strategic imports have been excluded from the tariff schedule. These exemptions extend beyond consumer electronics, such as smartphones and computers, to include a range of industrial inputs and components essential to the energy sector.^[3] As of May 13, 2025, Reuters reported that the U.S. and China have entered a 90-day deal where U.S. tariffs on Chinese goods will fall to 30%.^[4] Although temporary, such agreements offer insight into the government's broader strategy—perhaps an approach more balanced than the public had previously perceived—reflecting its intention to address trade dynamics without compromising the economy, especially progress in critical industries like energy and infrastructure. Subsequently, this reassures investors and signals a positive long-term trajectory, providing protection against volatility through targeted carve-outs. These measures help ease system-wide cost pressures, support IRR projections, and reduce supply-side risks.

Alongside favorable foreign policy development, the domestic outlook remains promising. Investors can take confidence in a landscape with a clear momentum and commitment to advancing renewable initiatives and national energy priorities. In recent announcements, the U.S. energy sector has set a $100 billion investment push over the next 5 years. Members of the American Clean Power Association (APC) and leading U.S. utilities have pledged to scale domestic battery production for BESS usage and reduce long-term dependence on foreign supply.^[5] For Bimergen, this environment presents not only resilience but opportunity. We are actively engaging in diversification to fortify our supply chain. Staying agile in our procurement and maintaining strong relationships with U.S. suppliers positions Bimergen to navigate the current climate effectively.

While headlines may focus on tariff spikes, a closer look at the details tells a different story, with strategic accommodation and sector-specific relief to prioritize national needs. While bilateral trade policy remains dynamic, recent developments reflect the government's priority to alleviate inflationary pressures and disruption in essential industries, including clean energy and battery energy storage sectors. Investors in Bimergen can remain confident that our portfolio is aligned with this trajectory and that the fundamentals supporting project economics remain strong.

References

1. Edwin Lopez, “Trump Excludes Some Electronics from Reciprocal Tariffs,” Supply Chain Dive, April 14, 2025, https://www.supplychaindive.com/news/trump-electronics-tariff-exemption-list/745209/

2. “Executive Summary – Batteries and Secure Energy Transitions – Analysis - IEA,” IEA, accessed May 22, 2025, https://www.iea.org/reports/batteries-and-secure-energy-transitions/executive-summary

3. Edwin Lopez, “Trump Excludes Some Electronics from Reciprocal Tariffs,” Supply Chain Dive, April 14, 2025, https://www.supplychaindive.com/news/trump-electronics-tariff-exemption-list/745209/

4. Kylie Maclellan et al., “US-China Trade Deal as It Happened: Tariffs to Be Lowered for 90 Days, US Stocks Rally | Reuters,” Reuters, May 13, 2025, https://www.reuters.com/world/us-china-tariff-live-updates-bessent-greerannounce-details-constructive-geneva-2025-05-12/

5. Jo Borrás, “American Energy Sector Set to Invest $100B in Battery Storage by 2030,” Electrek, May 10, 2025, https://electrek.co/2025/05/10/american-energy-sector-set-to-invest-100b-in-battery-storage-by-2030/

• Borrás, Jo. “American Energy Sector Set to Invest $100B in Battery Storage by 2030.” Electrek, May 10, 2025. https://electrek.co/2025/05/10/american-energy-sector-set-to-invest-100b-in-battery-storage-by-2030/

• “Executive Summary – Batteries and Secure Energy Transitions – Analysis - IEA.” IEA. Accessed May 22, 2025. https://www.iea.org/reports/batteries-and-secure-energy-transitions/executive-summary

• Lopez, Edwin. “Trump Excludes Some Electronics from Reciprocal Tariffs.” Supply Chain Dive, April 14, 2025. https://www.supplychaindive.com/news/trump-electronics-tariff-exemption-list/745209/

• Maclellan, Kylie, Alison Williams, Farouq Suleiman, Heather Timmons, Vanessa Balintec, Christina Anagnostopoulos , and Zoe Law. “US-China Trade Deal as It Happened: Tariffs to Be Lowered for 90 Days, US Stocks Rally | Reuters.” Reuters, May 13, 2025. https://www.reuters.com/world/us-china-tariff-liveupdates- bessent-greer-announce-details-constructive-geneva-2025-05-12/