In a significant escalation of the ongoing trade conflict between Washington and Beijing, China has moved to halt exports of several key rare earth metals and associated magnetic materials. The decision comes on the heels of US President Donald Trump’s aggressive expansion of tariffs on Chinese goods, a move that has inflamed tensions and led both nations down a path of tit-for-tat economic retaliation.

The export restrictions, announced jointly on April 4 by China’s Ministry of Commerce and the General Administration of Customs, target six heavy rare earth metals and high-performance magnets that are vital to the global technology and defense industries. These materials – which include dysprosium, terbium, and gadolinium – are essential for manufacturing electric vehicles (EVs), missiles, drones, and semiconductors.

Although China has not officially labeled the move as retaliatory, the context and timing are unmistakable. The New York Times reported that the new export controls are being enforced inconsistently at ports across China, with some customs authorities halting shipments entirely while others allow minimal quantities to pass pending further testing.

The newly imposed licensing system – a mechanism that gives Beijing tighter control over which companies can legally export these materials – has not yet been fully implemented. However, industry insiders told the NYT that enforcement is already having a chilling effect on the supply chain. Shipments have effectively ceased, leaving many American companies scrambling to source critical components.

Michael Silver, CEO of American Elements, said........

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