China stops exporting essential materials amid trade spat with US – NYT
The suspension relates to rare earth metals and magnets, as reported by the outlet. China has paused exports of several essential rare earth metals and magnets amid a growing trade conflict with the US, according to the New York Times. This...
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The suspension relates to rare earth metals and magnets, as reported by the outlet.
China has paused exports of several essential rare earth metals and magnets amid a growing trade conflict with the US, according to the New York Times. This action follows US President Donald Trump’s recent decision to significantly increase tariffs on imports from China and other nations.
On April 4, China’s Ministry of Commerce and the General Administration of Customs revealed new restrictions on the export of six heavy rare earth metals and the specialized magnets that are made from them, resources that are predominantly sourced from China. These materials, crucial for the manufacture of electric vehicles, drones, missiles, and computer chips, will now require special export licenses.
The NYT reports that the license system has not yet been fully implemented, leading to inconsistent enforcement across various ports. Some customs offices are allowing exports with minimal amounts of heavy rare earths, while others are demanding testing to verify compliance. Industry executives informed the paper that shipments remain on hold as of the latest weekend.
Michael Silver, CEO of American Elements, shared with the NYT that his company was recently notified that license processing could take up to 45 days. He mentioned that his organization has had to accumulate inventory in advance to fulfill existing contracts.
Daniel Pickard, chairman of the critical minerals advisory committee for the Office of the US Trade Representative, expressed to the paper that the export controls might “have severe effects in the US” and cautioned that a prolonged disruption could harm China’s standing as a reliable supplier.
The NYT also highlighted that the restrictions prevent Chinese companies from collaborating with an increasing number of US firms, especially in the defense sector. MP Materials CEO James Litinsky remarked to the outlet that this development represents a significant threat to the US military supply chain.
Earlier this month, Trump unveiled a broad escalation in tariffs, elevating the overall duty on Chinese imports to 145%. According to the White House, these measures are intended to boost domestic manufacturing and correct longstanding trade imbalances. While most heightened tariffs were suspended for 90 days for countries that agreed to negotiations, China was not included in this pause.
In retaliation, Beijing enacted reciprocal tariffs of 125% on American products on Saturday. China’s Ministry of Commerce accused Washington of utilizing tariffs as a means of coercion and cautioned that ongoing escalation would be economically futile. Chinese officials indicated that no additional retaliatory increases were planned but vowed to “fight to the end” and lodged a formal complaint with the World Trade Organization.
Ian Smith for TROIB News
China has paused exports of several essential rare earth metals and magnets amid a growing trade conflict with the US, according to the New York Times. This action follows US President Donald Trump’s recent decision to significantly increase tariffs on imports from China and other nations.
On April 4, China’s Ministry of Commerce and the General Administration of Customs revealed new restrictions on the export of six heavy rare earth metals and the specialized magnets that are made from them, resources that are predominantly sourced from China. These materials, crucial for the manufacture of electric vehicles, drones, missiles, and computer chips, will now require special export licenses.
The NYT reports that the license system has not yet been fully implemented, leading to inconsistent enforcement across various ports. Some customs offices are allowing exports with minimal amounts of heavy rare earths, while others are demanding testing to verify compliance. Industry executives informed the paper that shipments remain on hold as of the latest weekend.
Michael Silver, CEO of American Elements, shared with the NYT that his company was recently notified that license processing could take up to 45 days. He mentioned that his organization has had to accumulate inventory in advance to fulfill existing contracts.
Daniel Pickard, chairman of the critical minerals advisory committee for the Office of the US Trade Representative, expressed to the paper that the export controls might “have severe effects in the US” and cautioned that a prolonged disruption could harm China’s standing as a reliable supplier.
The NYT also highlighted that the restrictions prevent Chinese companies from collaborating with an increasing number of US firms, especially in the defense sector. MP Materials CEO James Litinsky remarked to the outlet that this development represents a significant threat to the US military supply chain.
Earlier this month, Trump unveiled a broad escalation in tariffs, elevating the overall duty on Chinese imports to 145%. According to the White House, these measures are intended to boost domestic manufacturing and correct longstanding trade imbalances. While most heightened tariffs were suspended for 90 days for countries that agreed to negotiations, China was not included in this pause.
In retaliation, Beijing enacted reciprocal tariffs of 125% on American products on Saturday. China’s Ministry of Commerce accused Washington of utilizing tariffs as a means of coercion and cautioned that ongoing escalation would be economically futile. Chinese officials indicated that no additional retaliatory increases were planned but vowed to “fight to the end” and lodged a formal complaint with the World Trade Organization.
Ian Smith for TROIB News
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