China Halts Rare Earth Exports, Threatens US Industries

China has halted exports of seven critical rare earth elements, including dysprosium and terbium, in retaliation for the significant tariffs imposed by the U.S., which have reached up to 145%. This suspension threatens to disrupt supply chains for various American industries such as automotive, aerospace, and military, as these elements are essential for manufacturing high-performance magnets used in electric vehicles, drones, and advanced weaponry. The new export regulations require special licenses, but the Chinese government has only just begun establishing this licensing system, raising concerns among industry leaders about potential shortages. With China controlling 90% of the world's rare earth magnets and a monopoly on heavy rare earth metals, the long-term implications could severely impact U.S. manufacturers. The heightened trade tensions come as both countries have engaged in escalating tariffs against each other, complicating the current economic landscape. Industry experts warn that without timely access to these materials, production in key sectors could face significant delays.