China halts rare earth exports in trade war escalation

Exports of critical rare earth minerals and magnets from China have ground to a halt following new export restrictions, threatening global supply chains across the semiconductor, automotive, defence, and energy sectors.

The suspension took effect on 4 April, after Beijing imposed strict new licensing requirements in response to steep United States tariffs introduced by President Donald Trump.

China dominates the global supply of rare earth materials such as dysprosium and terbium, which are essential for manufacturing everything from electric vehicles to drones and missiles.

Industry insiders say licence applications could take up to several months to process, sparking fears of shortages if the halt persists beyond two months. Traders estimate shipments might resume after at least 60 days, but delays could stretch further.

Trump defended the tariffs, claiming they are necessary to address trade imbalances, particularly with China. He hinted at further tariffs targeting semiconductors and electronic devices, while his commerce secretary confirmed that smartphones and laptops may also be subject to new levies.

Critics, including Senator Elizabeth Warren, have condemned the approach, warning it will lead to confusion and instability in global markets.

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