US–China Rare Earths Export Controls: Washington Seeks a Pause to Defuse Tariffs

US - China Rare Earths

US officials asked Beijing to pause US–China rare earths export controls to ease escalating trade tensions. They linked a pause to delaying planned tariff hikes. The US–China rare earths export controls debate now sits at the center of supply chain risk.

Tariff off-ramp hinges on rare earths pause

Treasury and trade leaders signaled willingness to de-escalate if China delays new restrictions. They also floated pushing back a 10 November tariff increase by 24 percentage points. However, recent threats of 100pc extra tariffs keep markets on edge. Meanwhile, China plans port fees and broader technology export limits. The US–China rare earths export controls standoff is pulling logistics and commodities into the crossfire.

Magnets, batteries, and allies in the line of fire

Rare earths sit upstream of EV motors, wind turbines, and defense systems. As a result, tighter controls could raise costs for NdFeB magnets and related alloys. Battery supply chains face parallel strain from high-end lithium battery curbs. US officials say coordination with Europe is essential. Yet transatlantic views diverge on sanctions and tariff tools. Therefore, procurement teams should model scenarios for price spikes and delivery delays.

Policy signals remain mixed from both capitals. Washington alternates between conciliatory and hard-line messages. Beijing appears ready to leverage pricing power and licensing timelines. In response, manufacturers should diversify magnet sources and qualify recycled material. They should also expand secondary refining and non-rare-earth motor options where feasible. These steps can cushion volatility if export licenses tighten further.

The Metalnomist Commentary

Expect policy brinkmanship to inject volatility across magnets, alloys, and battery metals. Procurement leaders should lock in optionality: dual-source magnets, expand recycling, and hedge tariff-exposed lanes. If a pause emerges, prices may ease briefly, but structural supply risk will persist.