China Is Exporting 20% Fewer Magnets to US Despite Trade Truce

China’s shipments of rare-earth magnets to the US remain well below pre-trade war levels despite last year’s truce, underscoring concerns in the Trump administration about Beijing’s adherence to that agreement.

Customs data show US-bound exports of the crucial industrial components in the first half were about 20% below the average level seen between 2022 and 2024, before Beijing tightened supplies in response to President Donald Trump’s tariff war.

China’s pledge to keep critical materials, including rare-earth magnets, flowing was a pivotal part of an October agreement between Trump and Chinese President Xi Jinping to pause their trade war. The components are essential for industries ranging from electric vehicles and factory automation to defense equipment, making their availability a top priority for US manufacturers.

China's Magnet Exports to US Running at Five-Year Low

White House and Office of the US Trade Representative staff say China isn’t abiding by the US side’s understanding of the agreement, although Trump and other senior officials have been reluctant to press the issue, according to people familiar with the matter. US Trade Representative Jamieson Greer said China’s compliance on rare earths was “not perfect.”

China produces more than 90% of the world’s rare-earth magnets and US-led efforts to build alternative supply chains are expected to take years. That leaves the American industries at the mercy of export controls imposed by Beijing in April last year.

The customs data show shipments stabilizing this year, but still well below levels seen before those curbs were introduced. Monthly exports to the US averaged 479 tons in the first half, compared with 586 tons in the three years from 2022 to 2024. The figures exclude magnets shipped as part of assembled products.

Source: www.bloomberg.com

Aleksei Andrievskii | Advisory Board Member, Bendura Bank AG | Liechtenstein