China has suspended exports of a wide range of critical rare earth minerals and magnets to the US and worldwide. Unusual Whales reports that China is drafting a new regulatory approach to minerals to prevent them from reaching American companies.
They threaten to stop supplies of components central to automakers, aerospace manufacturers, semiconductor companies, and military contractors.
Magnets are essential for assembling everything from cars and drones to robots and missiles. We let ourselves get into this position after years of neglect.
Shipments of magnets have been halted at many Chinese ports while the Chinese government drafts its new regulatory system. The new regulations could permanently prevent supply from reaching certain contractors, especially US military companies.
Rare Earth Minerals Aren’t Rare
“Important to note,” Elon Musk tweeted, “that what matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors.
“People understandably tend to think that rare earth mineral deposits are what’s scarce, given the name. That is false. They’re everywhere.
“As with lithium, what China has that others lack is the heavy industry of refining the minerals.’
We need heavy industry immediately.
Important to note that what matters is the ability to refine rare earth elements (which are NOT actually meaningfully rare) and manufacture magnets for use in electric motors.
People understandably tend to think that rare earth mineral deposits are what’s scarce, given the…
— Elon Musk (@elonmusk) April 13, 2025
China Calls on the US to Cancel the Tariffs
China welcomed the United States’ announcement of exemptions from import levies on consumer electronics. It said this was a “small step” in correcting President Donald Trump’s “wrong practice” of imposing 145 percent tariffs on Chinese goods.
“China is now evaluating the impact,” a Ministry of Commerce spokesperson said in a statement on Sunday, after Washington said smartphones, computers, and other electronics would be excluded.
Cancel the Tariffs
BBC reports that China is calling on the United States to “completely cancel” tariffs.
“We urge the US to take a big step to correct its mistakes, completely cancel the wrong practice of ‘reciprocal tariffs’ and return to the right path of mutual respect,” China’s commerce ministry said.
The Trump administration seemed ready to offer a concession on Friday, announcing that some electronic products—including those produced in China—would be exempt.
However, US Commerce Secretary Howard Lutnick told ABC News on Sunday that such exemptions would only be temporary.
He said the administration planned to impose such levies in a separate “semiconductor tariff”, which he said would be announced later.
“We need to have these things made in America,” Lutnick said.
No Exemptions & No Meetings with Xi
President Trump tweeted on social media, saying there was no exemption for these products and calling such reports false. Instead, he said, “They are just moving to a different Tariff ‘bucket’.”
Trump added: “We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations.”
Trump, 78, fresh from a visit to his golf club on Sunday blasted China in his post, claiming the U.S. would not be “held hostage by other Countries, especially hostile trading Nations like China.”
He argued Beijing, which is in an escalating trade war with the U.S., will “do everything within its power to disrespect the American People.”
According to trade Rep. Greer, the White House says Trump has no plans to speak with Xi Jinping about the tariff war.
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China accuses President Trump of being irrational. Xi’s idea of rational is allowing China to use slave labor to make cheap products and draw in manufacturing, steal technology from Western countries and create high tariffs and other barriers against free trade. President Trump is the first rational president we’ve had and Xi is a greedy Commie who doesn’t give a damn about anyone but himself..
” …and return to the right path of mutual respect…”
Not sure there was ever much of that, for years China has been imposing high tariffs, while benefiting from low tariffs from the USA.
The Empire Strikes Back!! My advice to Trump: May the Force be with you… 4D chess, 4D chess. Or the other possibility is a headline “China Attacks!!”
Spin spin spin. That’s not even remotely close to what happened. The reality is the Trump administration has no clear plan. They thought by launching his tariffs on countries that they would come and make a deal. That is not happening. The reality is we need China, China does not need us. We’re in this mess because Trump admin jumped out of the gate way too fast. We have nothing ready in the way of infrastructure to be self-sufficient, yet we slap these tariffs on China, and they possess goods we need. This was beyond stupid. My children’s’ college accounts for and my retirement is taking a battering in the process. I did not vote for this.
You don’t know what you’re talking about. If you need China so much, why don’t you go live there?
Thanks for the rational, facts-based discussion.
Shortsighted people talk like that. Our founders would have never beaten the British if they thought like that.
I am stating facts. This is a problem of trump’s own making. This tariff everyone situation is an absolute disaster.