China has imposed export restrictions on seven rare earth metals, effective April 4, 2025, in a move that escalates trade tensions with the US.
REUTERS
BEIJING/LONDON, April 4 (Reuters) – China placed export restrictions on rare earth elements on Friday as part of its sweeping response to U.S. President Donald Trump’s tariffs, squeezing supply to the West of minerals used to make weapons, electronics and a range of consumer goods.
The move, which Beijing had long hinted was possible, further ratchets up trade tensions between the world’s two largest economies and leaves American manufacturers scrambling for fresh supplies of the critical minerals they have relied upon for decades.
China produces around 90% of the world’s rare earths, a group of 17 elements used across the defense, electric vehicle, energy and electronics industries. The United States has only one rare earths mine and most of its supply comes from China.
Beijing announced the controls late on Friday as part of a broader package of tariffs and company restrictions in retaliation for Trump’s decision to hike tariffs against most Chinese products to 54%.
The export curbs include not only mined minerals but permanent magnets and other finished products that will be difficult to replace, analysts said.
The move, which affects exports to all countries, not just the U.S., is the latest demonstration of China’s ability to weaponize its dominance over the mining and processing of the critical minerals.
Seven categories of medium and heavy rare earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items, will be placed on an export control list as of April 4, according to a Ministry of Commerce release.