Fluence Energy Inc. shares fell as much as 18% in late trading after the company lowered its full-year guidance, citing the pause of certain US projects due to tariff policy.

The Arlington, Virginia-based battery company lowered its total fiscal year 2025 revenue to between $2.6 billion and $2.8 billion, down from between $3.1 billion and $3.7 billion. The company and its customers decided to pause US projects under existing contracts, as well as other contract decisions, in light of tariff uncertainty, according to a filing.

Fluence Chief Executive Officer Julian Nebreda characterized the outlook as short-term, saying in a statement, “Over time, we expect our domestically sourced solutions to benefit from higher tariff levels.”

President Trump’s trade policies are making grid batteries more expensive, with analysts warning that increased costs will likely lead to cancellations and delays. Although the US is ramping up its domestic battery supply chain, the country is still heavily reliant on imported batteries and components.

Residential solar company Sunrun said Wednesday that tariffs would boost its equipment costs nearly 10% in the second half of the year, with the majority of expenses tied to battery cells imported from China. Sunrun said it could offset the increases through price hikes and other measures.