China has imposed export controls on key rare earth magnets in retaliation against US tariffs, sparking concerns about a potential escalation of the trade spat between the two nations.
The move affects all countries, not just the US, and is aimed at curbing American access to these critical materials. Companies are scrambling to find alternative suppliers outside of China as they struggle to cope with the new restrictions.
This development marks an opening salvo in what is expected to be a drawn-out trade war between China and the US. The impact on global supply chains and markets remains unclear, but it’s clear that both sides are willing to escalate tensions over issues related to trade and technology.
China’s actions come as manufacturers face growing pressure to diversify their sourcing and secure alternative supplies for rare earth magnets, which play a critical role in various industries, including electronics and renewable energy.
Source: https://www.reuters.com/world/china-hits-back-us-tariffs-with-rare-earth-export-controls-2025-04-04