China has suspended exports of rare earth minerals and magnets used by auto manufacturers and military contractors, among others, in retaliation for President Donald Trump's 145% tariffs on the country, The New York Times reported Sunday.
China halted the exports while it crafts a new regulatory system that would require special export licenses, according to the report. The Chinese could permanently stop exports to certain companies, including U.S. military contractors, the Times reported.
The Times also reported that China has barely started on its new system, a process that if drawn out, could see global supplies dwindle given that China has a monopoly on the world's supply of heavy rare earth metals, according to the report. China also produces 90% of the world's rare earth magnets, according to the report.
Of particular concern is the impact on U.S. military contractors, one mining leader told the Times.
"Drones and robotics are widely considered the future of warfare, and based on everything we are seeing, the critical inputs for our future supply chain are shut down," CEO of MP Materials Corp. James Litinsky told the Times.
The suspension comes roughly 10 days after China placed export restrictions on rare earth elements that are also vital in the production of smartphones and electric car batteries. Samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items were put on an export control list on April 4.
That was a response to Trump's tariffs that went into effect on April 2. Since then, Trump escalated tariffs on Chinese imports to 145%. China retaliated by placing 125% tariffs on U.S. imports.
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
© 2025 Newsmax. All rights reserved.