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Highlights

• China freezes exports of seven critical rare earth elements, disrupting global supply chains in defense, energy, and automotive sectors.
• Export restrictions are part of Beijing's retaliation against U.S. tariffs.
• China holds a 90% dominance in rare earth element production.
• The export freeze may accelerate global efforts to diversify away from Chinese rare earth suppliers despite significant logistical challenges.

Rare Earth Exchanges confirms that China’s rare earth exports have effectively ground to a halt following new export control measures implemented on April 4. According to a Reuters report citing three industry sources, all outbound shipments of seven critical rare earth elements and related materials have been frozen as Chinese exporters face long delays securing licenses from the Ministry of Commerce. The restrictions are part of Beijing’s retaliation against President Trump’s recent tariff escalation targeting Chinese goods.

The export freeze is creating immediate supply chain uncertainty across global defense, energy, and automotive sectors. Traders in China estimate that the licensing process could take upwards of 60 days—or longer—given the opaque and politically sensitive nature of approvals, especially for U.S. clients. Reuters notes a precedent: antimony shipments to Europe have not resumed since China placed that metal under similar controls in September 2024.

The move underscores the geopolitical risk inherent in China’s dominance, as the country currently supplies about 90% of the world’s rare earth elements. While some exporters have declared force majeure on existing contracts, it is still unclear how many cargoes have been delayed or denied customs clearance. However, the long-term consequence may be a hastening of global diversification away from Chinese suppliers, despite the logistical and financial hurdles such a shift would entail.

In a surprise move amid escalating trade tensions, President Donald Trump announced a partial rollback of tariffs on certain categories of Chinese electronics, including consumer goods like smartphones, laptops, and household appliances. The decision, confirmed in an April 13 statement from the U.S. Trade Representative’s office, lowers the tariff rate from 25% to 10% on select products, citing inflationary pressure on American consumers and the need to stabilize tech supply chains. While the broader tariff regime targeting Chinese manufacturing remains intact, this targeted relief reflects a strategic recalibration rather than a softening of Trump’s overall economic stance toward Beijing.

Rare Earth Exchanges continues to monitor this evolving situation and remains committed to providing timely, accurate, and independent reporting on the global rare earth and critical minerals landscape. The current standoff highlights both the strategic leverage of rare earth supply and the urgent need for industrial policy solutions among Western economies.