Latest News

China retaliates against US tariffs by imposing export controls on rare earths

China placed export restrictions on rare earth elements as part of its response to President Donald Trump’s tariff package. This could cut off the U.S. from vital minerals essential to everything from electric car batteries to smartphones.

China produces 90% of the world’s refined rare earths. This group of 17 elements is used in the electronics, defense, electric vehicles, and clean energy industries. Most of the rare earths imported by the United States come from China.

According to a Ministry of Commerce press release, seven categories of medium and heavier rare earths including samarium and related items such as gadolinium and terbium will be added to an export control list on April 4.

This latest move by China to weaponise their dominance in the mining and processing critical minerals, affects all countries not just the U.S.

Beijing has already banned the export of metals to the U.S., and placed export controls on a number of other products. Jacob Gunter, an analyst at the Mercator Institute for China Studies, believes that Friday's decision will likely galvanize efforts to create alternative supply chains in the West.

"The more China uses this trigger even if the United States is the only country affected, the more European companies, European governments, and other countries will also consider the risks of having export controls placed on them."

Beijing announced these controls late Friday night as part of an broader package that included tariffs and restrictions on companies in response to U.S. president Donald Trump's decision of raising tariffs to 54% against most Chinese goods.

According to the U.S. Geological Survey, between 2019 and 2022 about three-quarters of rare earths imported by the U.S. came from China.

Beijing can limit shipments even though the export controls do not constitute a ban by limiting the number of export licenses that it issues. China has not exported antimony to European Union nations since March, after export controls were imposed on the metal in September.

China controls the mining and production of rare earths, despite the fact that they are common in the earth crust. It does this by imposing a strict quota system. Reporting by Amy Lv in Beijing and Lewis Jackson; Editing by Elaine Hardcastle, Jan Harvey

(source: Reuters)