China Halts Rare Earth Mineral Exports to U.S., Escalating Trade Tensions

Beijing, April 13, 2025 – China has formally ceased exports of key rare earth minerals to the U.S., a move that threatens to disrupt critical supply chains for American technology and defense industries. The decision, announced by China’s Ministry of Commerce, targets minerals such as dysprosium, terbium, and neodymium, which are essential for manufacturing everything from electric vehicle motors to advanced weaponry.

The export ban comes as a direct response to recent U.S. tariffs imposed on Chinese goods, which President Donald Trump raised to 54% on most imports last month. China, which controls approximately 90% of the global rare earth market, has increasingly leveraged its dominance over these critical materials as a geopolitical tool. The Ministry cited “national security interests” as the rationale for the ban, accusing the U.S. of undermining fair trade practices.

Rare earth minerals, a group of 17 elements, are vital to high-tech industries. Dysprosium and terbium, for instance, are used in smartphone components and missile systems, while neodymium powers magnets in wind turbines and electric vehicles. The U.S., heavily reliant on Chinese supplies, has only one operational rare earth mine and lacks sufficient domestic processing capabilities, leaving it vulnerable to such restrictions.

“This is a precision strike aimed at America’s technological and military backbone,” said Mark Smith, CEO of NioCorp Developments, a U.S.-based critical minerals company. “Without these materials, production lines for everything from fighter jets to consumer electronics could grind to a halt.”

The ban has already sparked concern across U.S. industries. Shares of companies like MP Materials, which operates the nation’s sole rare earth mine, surged as investors anticipated a scramble for alternative sources. Meanwhile, defense contractors like Lockheed Martin, which rely on rare earths for radar systems and fighter jets, face potential delays unless new suppliers are secured.

China’s move builds on earlier restrictions, including export controls on gallium, germanium, and antimony imposed in December 2024. Those curbs disrupted global chipmaking and military manufacturing, underscoring Beijing’s willingness to weaponize its mineral dominance. Analysts warn that the latest ban could drive up prices for rare earth-dependent goods, impacting consumers already grappling with tariff-related inflation.

The White House has vowed to respond, with officials exploring options to boost domestic production and secure supplies from allies like Australia and Canada. Last month, Trump invoked the Defense Production Act to accelerate critical mineral projects, but experts say it could take years to reduce U.S. dependence on China.

“Beijing’s playing hardball, and the U.S. is playing catch-up,” said Lyle Trytten, a critical minerals expert at RAND. “This isn’t just about economics—it’s about strategic leverage in a tech-driven world.”

On the international stage, China’s actions have raised alarms among U.S. allies. Japan, which faced a rare earth embargo from China in 2010, has urged coordinated efforts to diversify global supply chains. The European Union, also reliant on Chinese minerals, is reportedly reassessing its trade policies to mitigate similar risks.

As tensions mount, some fear the trade war could spiral further. “China’s signaling it’s ready to escalate,” said Nathan Picarsic, co-founder of Horizon Advisory. “The question is whether the U.S. can adapt before the costs become unbearable.” 17GEN4.com