AES · 10-Q · 2026Q3 · Full report

Trade Policy and Tariffs

AES CORP · 2026-11-03 · Importance 46 · Surprise 42 · In source text

U.S. trade measures include Section 301 tariffs of 25% on certain Chinese lithium-ion batteries and related components effective January 1, 2026, and new Section 232 measures scheduled to impose a 15% tariff on polysilicon and derivative products, including solar cells and modules, effective December 4, 2026. The filing also describes tariffs on metals, forced-labor-related tariffs, investigations, and import restrictions affecting solar, wind, batteries, and power-system equipment; AES says the impact of several measures remains uncertain, while it does not expect material effects from certain metal tariffs or the expired Section 122 tariffs. AES expects tariffs to increase costs for materials and parts used in U.S. renewable projects, but says supply-chain diversification, domestic sourcing, and contracts have mitigated exposure, with limited impact expected for projects scheduled to become operational in 2026–2027. AES has contracted most panel needs, all storage battery needs, and turbines for its 2026 U.S. wind backlog, while contracting U.S. suppliers for its 2027 wind backlog.

Key facts

• Effective December 4, 2026, the U.S. Government will implement a minimum import price for polysilicon, wafers and ingots, solar cells, and solar modules, and impose a 15% tariff on polysilicon and derivative products, including solar cells and modules; the impact on AES is uncertain. source
• U.S. Section 301 tariffs on certain Chinese lithium-ion batteries and related energy-storage components are 25% effective January 1, 2026, up from 7.5%. source
• The impact on AES of new and potential Section 301 tariffs stemming from forced-labor investigations is uncertain; tariffs ranging from 10% to 12.5% took effect July 24, 2026. source
• AES says remaining imported panels for its 2026–2027 U.S. solar backlog are expected to be largely insulated from AD/CVD and announced Section 232 measures through contractual protections; the manufacturers are importers of record and retain import obligations and risks. source
• AES reports that UFLPA impacts the U.S. market but AES has managed the issue without significant impact to its projects; further forced-labor designations could affect suppliers’ ability or willingness to meet contracts or supply U.S. solar cells and panels on satisfactory terms. source
• The impact on AES of the August 2026 Executive Order restricting certain bulk-power system electric equipment is uncertain; the Secretary of Energy had made no determinations as of the filing. source
• AES expects limited impact to projects scheduled to become operational in 2026 through 2027 from announced tariffs on China and other countries. source
• AES does not believe the FCC’s July 2026 Covered List update on new foreign-produced power inverters will have a significant impact on its solar and battery projects under development. source

Impact estimates