China’s Rare Earth Magnet Exports to U.S. Drop 30% Amid Trade Tensions

China’s exports of rare earth magnets to the U.S. fell nearly 30% in September year-over-year, marking the second consecutive monthly decline. Customs data revealed shipments of 420.5 tons, down 29% from August. This follows a brief summer rebound when Beijing temporarily relaxed export rules during trade talks in London.

Since September, Chinese exporters have faced stricter license reviews, coinciding with expanded controls on rare earth materials in October. These measures intensify trade friction as both nations vie for dominance in critical industrial sectors. China supplies 90% of the global market for rare earth magnets, essential for EVs, wind turbines, and defense systems. Past restrictions triggered global shortages, and the current downturn threatens supply chains further.

The U.S. and allies are accelerating efforts to diversify supply sources, though alternatives remain underdeveloped. Market volatility in tech and green energy sectors may intensify as material scarcity impacts production timelines.