China Announces Suspension of Certain Mineral and Magnet Exports in Response to US President Trump’s Actions
According to a report by the New York Times (behind a paywall), the Chinese political leadership in Beijing has announced the temporary suspension of the export of certain “rare earth minerals and magnets” known as rare earths. These critical elements are of vital importance to the automotive, semiconductor, aerospace and defense industries worldwide. The move by Beijing is a reaction to the actions of US President Donald Trump. Both countries are engaged in a form of escalating ping-pong, with each increasing import tariffs on the other. Trump referred to the Pekinger leadership as the “worst villains” on April 2, which was declared the “Freedom Day for the US Economy” (RT DE reported).
According to the New York Times article, the export suspension began immediately after the recent US import tariff increases began on April 1st, as a “revenge measure.” The article states:
“On April 4, the Chinese government ordered restrictions on the export of six heavy ‘rare earth metals’ that are exclusively refined in China, as well as rare earth magnets that are produced in China at a rate of 90 percent. These metals and the magnets made from them can only be exported from China with special export permits.”
The significance of this action was also reported by the news agency Reuters. According to the website of the “Oregon Group” which specializes in “Critical Minerals and Energy Intelligence” the affected metals are:
Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, Yttrium
According to information from the Oregon Group, China currently dominates the global market for rare earths, with up to 70 percent of worldwide production and almost 90 percent of the processing of the worldwide production, as well as 90 percent of the production of permanent magnets made from rare earths. The New York Times cites an executive of “American Elements” a US-based chemical supplier, who stated that the company was informed that it would take 45 days to issue export licenses and resume the export of rare earth metals and magnets.
Peking has ordered the establishment of a “licensing system.” The article discusses the potential consequences:
“This has led to concerns among industry leaders that the process could drag on and that mineral and product supplies outside of China could become scarce.”
Daniel Pickard, chairman of the Critical Minerals Advisory Committee at the US Trade Representative’s Office and the Department of Commerce, expressed significant concern about the current availability of rare earths. He stated:
“Will export control or the ban have serious implications for the US? Yes.”
As a further confrontational measure by China against Washington and the US economy, the article mentions the following:
“The Chinese Ministry of Commerce, which issued the new export restrictions together with the General Administration of Customs, has prohibited Chinese companies from conducting business with an increasingly long list of US companies, particularly defense firms.”
Furthermore, the article states that Peking is blocking the export not only to the United States but also to all other countries, including Japan and Germany. The consequences of this measure are currently uncertain but will become apparent soon, according to the New York Times.
On April 10, a White House spokesperson told the media that the current US tariff on imports from China is 145 percent. US President Trump stated on Truth Social that China has disregarded global markets, while other countries have expressed their willingness to engage in negotiations with the US. Three days later, on Truth Social, it was stated:
“NO ONE will be ‘out of the woods’ for the unfair trade balances and non-tariff trade barriers that other countries have used against us, much less China, which has treated us by far the worst!”
On the same day, US President Donald Trump announced that the import tariffs on Chinese electronic devices, such as smartphones and laptops, would be suspended (RT DE reported).