US Rare Earth Buyers Still See China Curbs Despite Trump Deal
China continues to restrict rare earth elements needed by the US for domestic production of permanent magnets and other products, despite an October agreement between President Donald Trump and Chinese President Xi Jinping that was meant to lift such restrictions.
According to a report from Bloomberg, citing more than a dozen consumers, producers, government officials and trade experts, while China has increased deliveries of finished products, primarily permanent magnets, the US industry still cannot acquire the raw materials needed to manufacture these items domestically.
The ongoing supply limitations highlight persistent tensions in US-China relations following the October 30 truce reached in South Korea, where the US agreed to cut tariffs and China pledged to restore rare earth supplies. At that time, Trump characterized the agreement as the "de facto removal" of various Chinese restrictions.
By limiting deliveries of raw materials, China is effectively hindering US efforts to establish its own processing industry for rare earths, which are critical components in products ranging from consumer electronics to missile guidance systems. The Trump administration has prioritized developing domestic production capacity for permanent magnets and other rare earth products to reduce dependence on China, which has established a global monopoly in the sector over many years.
The sources discussing these ongoing restrictions asked not to be identified as they were speaking about matters that aren’t public.