Camilla Jessen
China has stopped exports of key minerals critical to global industries after the U.S. imposed steep tariffs.
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China has stopped exporting rare earth minerals and magnets after U.S. President Donald Trump raised tariffs on Chinese goods to 145%, according to The New York Times.
Shipments have been halted at all Chinese ports while Beijing works on new rules that could block sales to certain companies — including American defense contractors.
This decision hits hard across industries like car manufacturing, electronics, aerospace, and defense. Magnets made with rare earths are used in everything from electric vehicles and robots to missiles and drones.
Trump’s tariffs, announced in early April, originally applied to over 200 countries and territories. Although most were given a 90-day delay, China was not. The U.S. tariffs on Chinese goods started at 20% and were later raised in steps to 145%. In response, China set its own tariffs at 125%.
New Controls on Rare Earth Metals
On April 4, China introduced export controls on seven rare earth elements — samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium. This doesn’t mean an outright ban, but it does mean the Chinese government will closely watch who buys these materials and how they’re being used.
China has already placed similar restrictions on other key resources like gallium, germanium, graphite, and antimony.
As Bloomberg pointed out, these moves could shake up the global supply of materials used in high-tech products.
China leads the world in rare earth production, supplying nearly 70% of what’s used globally, according to the U.S. Geological Survey. The U.S. is especially dependent on Chinese exports to support its technology and defense sectors.
To reduce that reliance, Trump is looking to strike deals elsewhere. According to the report, the U.S. is in talks with Ukraine to allow American companies access to its rare earth reserves. Russia has also offered to work with the U.S. — including joint production in both Russia and in occupied parts of Ukraine.
Rare earth metals are found in small amounts, but they’re critical for modern technology. With China cutting off exports and trade tensions rising, industries across the globe could soon face delays, shortages, and higher costs.