Chinese Communist Party suspends some rare earth mineral exports, White House responds

The White House National Economic Council Director Kevin Hassett expressed concern on Monday (April 14) over China’s decision to halt some rare earth mineral exports, stating that the United States is considering all options.

Hassett told reporters outside the White House, “We are carefully studying the rare earth restriction issue, which is concerning, and we are currently considering all options.”

Rare earth minerals are crucial materials for technology and electronics manufacturing, widely used in defense, electric vehicles, clean energy, and the electronics industry. China produces approximately 90% of the world’s refined rare earth minerals. The United States relies heavily on imports for rare earth minerals, with a significant portion coming from China. In recent years, China has increasingly used restrictions on critical metal exports as an economic leverage tactic.

Following President Trump’s announcement of reciprocal tariffs on April 2, China’s Ministry of Commerce announced export controls on seven categories of medium and heavy rare earth-related items such as terbium, dysprosium, and yttrium on April 4, with the controls taking effect immediately upon announcement.

Sources revealed to the Financial Times that the Trump administration is drafting an executive order to allow the extraction of metals discovered on the seabed of the Pacific Ocean to counter China’s dominant position in the battery minerals and rare earth supply chain.

According to one source, these reserves would “create a large, readily available supply within the United States for future use” to address situations where metal and rare earth imports could be restricted due to conflicts with China.

The United States is seeking to achieve self-sufficiency in critical minerals. In addition to seeking a critical minerals agreement with Ukraine, measures to increase domestic production have been announced. The U.S. is also seeking to curb China’s control over critical minerals in Greenland. The developer of Greenland’s largest rare earth deposit, Tanbreez Mining, stated that U.S. and Danish officials had lobbied them last year, urging them not to sell rare earth projects to enterprises associated with China.

Trump’s tariff policies have recently sparked global attention and market volatility. In an interview with Fox Business News on Monday morning, White House National Economic Council Director Hassett stated that the Trump administration believes an economic downturn is unlikely.

The Trump team is currently engaged in trade talks with European Union representatives in Washington. Hassett noted that U.S.-EU negotiating representatives have met multiple times and made significant progress.

“We have had a lot of discussions with the EU,” he said. “We are making significant progress. This is very beneficial for American workers, especially American auto workers.”