China has suspended exports of a wide range of critical rare earth minerals and magnets to the US and worldwide. Unusual Whales reports that China is drafting a new regulatory approach to minerals to prevent them from reaching American companies.
They threaten to stop supplies of components central to automakers, aerospace manufacturers, semiconductor companies, and military contractors.
Magnets are essential for assembling everything from cars and drones to robots and missiles. We let ourselves get into this position after years of neglect.
Shipments of magnets have been halted at many Chinese ports while the Chinese government drafts its new regulatory system. The new regulations could permanently prevent supply from reaching certain contractors, especially US military companies.
Rare Earth Minerals Aren’t Rare
“Important to note,” Elon Musk tweeted, “that what matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors.
“People understandably tend to think that rare earth mineral deposits are what’s scarce, given the name. That is false. They’re everywhere.
“As with lithium, what China has that others lack is the heavy industry of refining the minerals.’
We need heavy industry immediately.
Important to note that what matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors.
People understandably tend to think that rare earth mineral deposits are what’s scarce, given the…
— Elon Musk (@elonmusk) April 13, 2025
China Calls on the US to Cancel the Tariffs
China welcomed the United States’ announcement of exemptions from import levies on consumer electronics. It said this was a “small step” in correcting President Donald Trump’s “wrong practice” of imposing 145 percent tariffs on Chinese goods.
“China is now evaluating the impact,” a Ministry of Commerce spokesperson said in a statement on Sunday, after Washington said smartphones, computers, and other electronics would be excluded.
Cancel the Tariffs
BBC reports that China is calling on the United States to “completely cancel” tariffs.
“We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” China’s commerce ministry said.
The Trump administration seemed ready to offer a concession on Friday, announcing that some electronic products—including those produced in China—would be exempt.
However, US Commerce Secretary Howard Lutnick told ABC News on Sunday that such exemptions would only be temporary.
He said the administration planned to impose such levies in a separate “semiconductor tariff”, which he said would be announced later.
“We need to have these things made in America,” Lutnick said.
No Exemptions & No Meetings with Xi
President Trump tweeted on social media, saying there was no exemption for these products and calling such reports false. Instead, he said, “They are just moving to a different Tariff ‘bucket’.”
Trump added: “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
Trump, 78, fresh from a visit to his golf club on Sunday blasted China in his post, claiming the U.S. would not be “held hostage by other Countries, especially hostile trading Nations like China.”
He argued Beijing, which is in an escalating trade war with the U.S., will “do everything within its power to disrespect the American People.”
According to trade Rep. Greer, the White House says Trump has no plans to speak with Xi Jinping about the tariff war.
Subscribe to the Daily Newsletter
wpDiscuz
