China's Rare Earth Magnet Exports to the U.S. Remain 20% Below Pre-Trade War Levels
Claire Weston
China shipped an average of 479 tonnes of rare-earth magnets to the U.S. per month in H1 2026 — roughly 20% below the 2022–2024 average — and White House staff are now questioning whether Beijing is honoring its truce commitment.
How big is the export gap?
Monthly shipments averaged 479 tonnes in H1 2026, versus a three-year pre-controls average of 586 tonnes — a gap of roughly 20%.
These figures cover standalone magnet exports only, excluding magnets embedded in finished goods; the real shortfall may be larger.
This means → the supply drop triggered by China's April 2025 export controls has never truly recovered.
Didn't the truce promise to keep supply flowing?
The October 2025 truce between Trump and Xi included a core provision: China would maintain normal flows of critical materials, rare-earth magnets among them.
White House and USTR staff believe China has not complied with the U.S. understanding of that commitment, according to people familiar with the matter.
Trade Representative Jamieson Greer said publicly that China's compliance on rare earths has been "less than perfect."
Why hasn't the U.S. pushed back harder?
Despite internal skepticism, Trump and other senior officials have so far declined to press Beijing on the issue.
In plain terms = without a credible alternative supply, it is hard to force the issue at the negotiating table.
China produces over 90% of the world's rare-earth magnets; U.S.-led alternative supply chains are still years away from meaningful scale.
Which industries feel this most directly?
Rare-earth magnets are critical components in EV motors, factory automation, and defense equipment.
This means → the supply gap is not just a trade statistic — it directly caps manufacturing and military production capacity in the U.S.
For now, affected American industries remain heavily dependent on Chinese supply, with no near-term substitute in sight.
Content is for reference only, not financial advice.