AES · 10-Q · 2026Q2 · Full report

Trade Policy and Tariffs

AES CORP · 2026-08-04 · Importance 65 · Surprise 82 · In source text

U.S. antidumping and countervailing duty orders apply to certain solar cells and panels from Cambodia, Malaysia, Thailand, and Vietnam, with ongoing litigation before the Federal Circuit and the U.S. Court of International Trade. Section 301 tariffs on Chinese lithium-ion batteries and related energy-storage components increased to 25% effective January 1, 2026, from 7.5%, while new Section 301 tariffs of 10% to 12.5% related to forced-labor investigations became effective July 24, 2026. AES expects tariffs on Chinese imports to increase materials and parts costs, but it has shifted most U.S. renewable-equipment sourcing outside China and expects limited impact on projects becoming operational in 2026 and 2027. AES has contracted most solar, all storage batteries, and all 2026 wind turbines for its 2026–2027 U.S. backlog, with substantial sourcing from U.S. and South Korean suppliers.

Key facts

• The Trump Administration expanded Section 232 tariffs to impose 25% on steel and aluminum on February 10, 2025 and raised them to 50% effective June 4, 2025; President later applied 50% on articles wholly of steel, aluminum, or copper and 25% on derivative products in April 2026 source
• Section 301 tariffs on certain Chinese lithium-ion batteries and components are set at 25% effective January 1, 2026 (increase from 7.5%) source
• In March 2026, USTR initiated Section 301 investigations concerning possible persistent trade surpluses and unused capacity with respect to China, the EU, South Korea, and others; also initiated Section 301 investigations on 60 countries regarding potential failures to take action on forced labor; effective July 24, 2026 USTR imposed tariffs ranging from 10% to 12.5% stemming from investigations concerning forced labor source
• In July 2025 Commerce initiated a Section 232 investigation on polysilicon and in August 2025 initiated a separate Section 232 investigation on wind turbines and their parts; investigations are ongoing source
• Commerce issued AD/CVD orders on solar cells and panels from Cambodia, Malaysia, Thailand, and Vietnam on June 24, 2025 implementing rates from April 18, 2025 determinations; AES does not expect these orders will have a negative impact on its business source
• In March 2026, the ITC issued a negative determination in companion investigation on graphite anode material and therefore no AD/CVD orders will issue on anode material from China source

Impact estimates