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← Tariff Schedule
HS 8507.60Critical

Lithium-ion batteries

Chapter 85 — Electrical machinery and equipment|Broad tariff
Current tariff rate
25%
Prior rate
0% (CUSMA)
Canadian export value
$2.4B
CUSMA eligible
Yes (RVC 75%)
TARIFF DETAILS
Effective date
2025-03-04
Tariff type
Broad tariff
CUSMA INFORMATION
Eligibility
Eligible
RVC threshold
75%
SECTOR IMPACT

Battery gigafactory investments in Canada face uncertain ROI as tariffs undermine export economics. IRA battery production tax credits partially offset.

NOTES

Battery cell and pack manufacturing is a strategic priority for both Canada and the US. New facilities in Ontario and Quebec are ramping production for North American EV platforms.

MITIGATION STRATEGIES

Actionable options for affected Canadian exporters

  1. 1

    CUSMA RVC optimization

  2. 2

    US production facility

  3. 3

    Supply chain restructuring

  4. 4

    Product redesign for tariff shift

INDUSTRIES AFFECTED BY THIS TARIFF

Canadian industries exposed to HS 8507.60 tariff changes

Renewable EnergyModerate
Energy·40/100 impact
RELATED TARIFF CODES
8504.40High

Static converters (power supplies, inverters, rectifiers)

25%High
8703.80Critical

Motor vehicles with electric motor for propulsion (BEVs)

25%Critical

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