Trade war escalates between China and US as Beijing imposes unexpected ban on export of THESE rare earth metals

Amidst the ongoing China-US trade war, Beijing has reportedly declined to remove the export ban on seven rare earth metals to the United States, despite the two countries having reached a preliminary trade agreement during recent discussions in Switzerland.

In a related development, CNBC Aawaz reported that China has temporarily suspended export controls for 28 US companies, while 17 additional firms have been removed from Beijing's "Unreliable Entity List." This agreement is set to be in effect for a period of 90 days.

China bans seven rare earth metals

China's refusal to lift the export ban on seven rare earth metals—Samarium, Gadolinium, Terbium, Dysprosium, Lutetium, Scandium, and Yttrium—presents a significant challenge to the supply chains of American companies in the defense, energy, and automotive sectors. These rare earth metals are essential raw materials used in the production of American weaponry, batteries, jet engines, missile guidance systems, renewable energy technologies, and electric vehicles.

According to an official statement from the Chinese Commerce Ministry, all relevant departments have concurred on the necessity for enhanced control over the export of strategic minerals to safeguard national security. However, the ministry has not provided any additional details regarding the export ban on rare-earth minerals.

Notably United States relies on China for over 80% of its rare earth metal supply. China initiated export restrictions last month in response to the US President's actions, which triggered a tariff war by implementing significant tariffs on Chinese imports.

China-US trade war

Earlier, US President Donald Trump announced reciprocal tariffs on goods entering America from various nations, including India and China, effectively initiating a tariff war that has reshaped global trade dynamics. Trump's tariffs, which took effect from April 2, 2025, led to a China-US tariff war, with both countries imposing substantial tariffs on imports from each other.

Following recent high-level trade discussions between the US and China in Switzerland, an agreement was reached to relax import tariffs. Despite this, recent reports indicate that China has opted to maintain its export ban on rare earth metals, potentially creating significant challenges for supply chains within the United States.