China Restricts Export of 7 Types of Heavy Rare Earths in Retaliation Against US Tariff Increase

On April 5, 2025, President Trump of the United States announced a 34% tariff hike on China, triggering a series of retaliatory measures by the Chinese government on the same day. These measures include the imposition of export controls on seven categories of medium to heavy rare earth materials such as scandium, yttrium, and terbium, which will take effect from the date of announcement.

The Ministry of Commerce and the General Administration of Customs of China issued a joint announcement on April 4, imposing export controls on certain medium to heavy rare earth materials.

A spokesperson for the Ministry of Commerce stated that on the 4th, the Ministry of Commerce, in conjunction with the General Administration of Customs, issued an announcement regarding the implementation of export control measures on seven categories of medium to heavy rare earth materials such as scandium, yttrium, and terbium, to be effective from the date of announcement.

Earlier, the Chinese media outlet “Sohu News” reported that as early as the era of Deng Xiaoping, he once said: “The Middle East has oil, China has rare earths.” The underlying message was that rare earths would become a powerful bargaining chip for the Chinese Communist Party at the negotiating table on the world stage in the future.

In the U.S.-China trade war, the Chinese government has repeatedly played this card and increased its leverage. In early January, before President Trump took office, Chinese officials notified relevant companies and units to include declarations of rare earths, titanium minerals, graphite, and other critical strategic resources in the “Overseas Major Mineral Resource Situation” report for “outbound direct investment,” as well as new requirements for reporting indicators such as “remaining economic recoverable reserves.”

To counter China’s dominant position in the rare earth sector, President Trump is pushing forward with a series of plans.

According to a report by The Epoch Times on March 31, a Russian International Economic and Investment Cooperation Special Envoy revealed to the Russian media outlet “Izvestia” that the U.S. and Russia have begun negotiations on rare earth metal cooperation, with plans to jointly develop resources within Russia. This action is seen as the latest step by the Trump administration to counter China’s rare earth monopoly and strengthen U.S. supply chain security.

Currently, Trump has ordered the Pentagon to develop a comprehensive plan for “rare earth and critical minerals,” ensuring that the United States can be self-sufficient in strategic material supply chains to cope with potential conflicts and global supply risks. On March 20, Trump signed an executive order to expedite mining, processing, and supply chain restructuring for critical minerals, prioritizing federal lands for mineral production.

Furthermore, the Trump administration is negotiating with Ukraine in the hopes of reaching a bilateral agreement covering rare earths and strategic minerals. This agreement may include Ukraine’s titanium, lithium, rare earths, and other rare metals. It is widely believed that this move is a crucial step for the U.S. to reduce its dependence on Chinese rare earths.

According to a report released by the U.S. Geological Survey (USGS) in 2024, China’s rare earth production in 2023 was 240,000 tons, accounting for approximately 68.5% of global production, far surpassing other countries such as the United States and Myanmar.

The report indicates that 72% of rare earth metals and related compounds imported by the U.S. are sourced from China (including Hong Kong), with the remainder primarily coming from Malaysia, Japan, and Estonia. It is widely believed that this poses a significant threat to the economic and national security of the United States.