China has suspended exports of critical minerals and magnets to the US, used in making semiconductors, electric vehicles, solar panels, and missiles. The move is part of Beijing’s retaliation against US President Donald Trump’s tariff increase, which began on April 2.
The halt affects six heavy rare earth metals and rare earth magnets, which are produced mainly in China. Export licenses are now required for these shipments to the US. This move will likely hurt US manufacturing, particularly automakers in Detroit and technology companies in Silicon Valley.
Analysts say the US will need to find alternative sources for critical minerals and magnets from countries like Canada, Russia, and Australia. However, many of these materials are unique to China.
The suspension affects several major US companies, including Tesla, Nvidia, and Lockheed Martin, which rely on these imports. Beijing is also banning Chinese companies from doing business with American firms.
Source: https://www.tipranks.com/news/tsla-nvda-lmt-china-halts-critical-mineral-and-magnet-exports-to-u-s