Despite Trump-Xi deal, China's rare earth magnet exports to US remain low
Shipments of these key industrial components to the US during the first six months of the year were roughly 20% lower than the average recorded
Shipments of these key industrial components to the US during the first six months of the year were roughly 20% lower than the average recorded between 2022 and 2024. (Reuters photo) China exports fewer magnets to US China's exports of rare-earth magnets to the United States continue to remain significantly below levels recorded before the trade conflict, despite the truce reached last year. This highlights ongoing concerns within the Donald Trump administration over Beijing's implementation of the agreement.China's commitment to maintain supplies of critical materials, including rare-earth magnets, formed a central element of the October agreement under which Trump and Chinese President Xi Jinping agreed to pause the trade war.Rare-earth magnets are vital inputs for a wide range of industries, including electric vehicles, factory automation and defence manufacturing, making uninterrupted supplies a priority for American industry.According to customs data quoted in a Bloomberg report, shipments of these key industrial components to the US during the first six months of the year were roughly 20% lower than the average recorded between 2022 and 2024, prior to China's decision to tighten supplies in response to President Donald Trump's tariff measures.People familiar with the matter said officials in the White House and the Office of the US Trade Representative believe China has not complied with the US interpretation of the agreement.However, Trump and other senior administration officials have so far been reluctant to escalate the issue. US Trade Representative Jamieson Greer said China's compliance on rare earths was “not perfect.”China accounts for more than 90% of global rare-earth magnet production, while efforts led by the US to establish alternative supply chains are expected to take several years.As a result, American industries continue to depend heavily on exports that have remained subject to the controls imposed by Beijing in April last year.The customs figures indicate that exports to the US have stabilised this year but remain well below the levels seen before those export restrictions took effect.Average monthly shipments during the first half of the year stood at 479 tonnes, compared with an average of 586 tonnes a month between 2022 and 2024. The data do not include magnets exported as components of assembled products.
The BriefWire