China halts exports of critical materials amid trade war with US
China has halted exports of several critical rare earth metals and magnets amid a deepening trade war with the US, the New York Times has reported. The move follows US President Donald Trump's decision to drastically raise tariffs on imports from China and other countries earlier this month.
On April 4, China's Ministry of Commerce and the General Administration of Customs announced new restrictions on the export of six heavy rare earth metals and special magnets made with them, which are almost exclusively mined in the country. The materials, essential for electric vehicles, drones, missiles and computer chips, now require special export licenses.
According to the NYT, the license system has not yet been implemented, and enforcement currently varies by port. Some customs offices have allowed exports with minimal traces of heavy rare earths, while others require testing to confirm compliance. Industry executives told the paper that shipments remain suspended as of the weekend.
Michael Silver, the CEO of American Elements, told the NYT that his company was recently informed that licenses could take 45 days to process, adding that his firm has been forced to build up inventory in advance in order to meet current contracts.
The chairman of the critical minerals advisory committee for the Office of the US Trade Representative, Daniel Pickard, also told the paper the export controls could
'have severe effects in the US'
and warned that prolonged disruption could damage China's reputation as a supplier.
READ MORE:
'Not good for China' to retaliate over tariffs – White House
The NYT noted that the restrictions also prohibit Chinese firms from working with a growing list of US companies, particularly defense contractors. MP Materials CEO James Litinsky told the outlet that the move poses a serious risk to the US military supply chain.
Earlier this month, Trump announced a sweeping escalation in tariffs, raising the total duty on Chinese imports to 145%. The White House said the measures were aimed at promoting domestic manufacturing and addressing longstanding trade imbalances. While most elevated tariffs were paused for 90 days for countries that agreed to talks, China was excluded from the reprieve.
In response, Beijing imposed reciprocal tariffs of 125% on American goods on Saturday. China's Ministry of Commerce accused Washington of using tariffs as a form of coercion and warned that continued escalation would be economically meaningless. Chinese officials said no further retaliatory hikes were planned but pledged to
'fight to the end'
and filed a formal complaint with the World Trade Organization.
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