China has halted exports of key rare earth minerals and magnets crucial to American manufacturing, defense, and high-tech industries.
Beginning April 3, Beijing stopped shipping seven heavy rare earth metals — including dysprosium and yttrium — and their refined magnets, materials vital for powering everything from electric vehicles (EVs) to fighter jets and smartphones.
According to experts, China’s near-total control over these specialized elements gives it immense leverage over foreign industries, especially those in the United States.
“Rare earths are in everything,” said Drew Horn, who served as the top U.S. official on strategic minerals and energy supply chain development under President Trump’s first administration. He added that China has “created an all-powerful monopoly” on the global supply of heavy rare earths and their subsequent processing.
The U.S. relies heavily on Chinese exports for critical minerals used in products like cell phones, car headlights, spark plugs, aircraft components, and advanced defense systems. Without access to these specialized materials, America’s electric vehicle and tech manufacturing could face severe disruptions. Factories may run out of inventory if alternative sources are not secured soon.
Michael Silver, CEO of a Los Angeles-based chemicals supplier, reported that his company was warned it could take up to 45 days before new export licenses are issued. Others might not receive any approvals at all, effectively grinding production to a standstill.
Chinese officials describe the ban as a direct response to the Trump administration’s latest round of tariffs on Chinese goods — now standing at 145%.
Beijing has slapped a 125% reciprocal tariff on American products and demanded a “complete cancellation” of U.S. tariff hikes.
Washington, however, insists these actions are justified and part of a broader effort to counter China’s longstanding trade imbalances.
“The Chinese have been threatening this because they do have that leverage,” noted Horn. “Now they’re doing it.”
President Trump, in his second term, has doubled down on calls to bring manufacturing back to American soil, framing the rare earth ban as proof that the U.S. must end its overreliance on hostile trading partners.
He recently invoked the Defense Production Act to boost domestic production of critical minerals, citing their indispensable role in the military, particularly in cutting-edge technologies like drones and robotics.
“We also cannot let them continue to abuse us on trade … THOSE DAYS ARE OVER!” Trump said on Truth Social, emphasizing the need for the U.S. to produce its own essential materials.
Even before the ban, Trump had sought deals and potential acquisitions in places like Ukraine and Greenland, aiming to secure mineral rights. While experts say these moves could help secure raw supplies, processing is another hurdle.
China still dominates midstream refining facilities worldwide, making it difficult for outside countries to take advantage of their own rare earth deposits without relying on Chinese refineries.
“In a lot of ways, the midstream processing is the most difficult,” Horn explained. “Even if you dig it up, you have to ship [it] to Chinese refineries exclusively.”
Craig Singleton, a senior China fellow at the Foundation for Defense of Democracies, predicts the U.S. will accelerate efforts to break China’s monopoly by scaling domestic production and “friend-shoring” — partnering with allied nations for both mining and processing.
However, building refining facilities and ramping up extraction in North America or other friendly territories could take years.
In the meantime, American businesses are bracing for interruptions. Some have stockpiled minerals to weather temporary shortages, but many say they face mounting uncertainty if Beijing draws out its ban or tightens its export controls further.