Archive · 3 Nov 2025
US Warns of Tariffs If China Blocks Rare Earth Exports
Imagine two big countries, the US and China, who trade a lot of stuff.
China has special metals called rare earths that many countries need to make things like phones and cars.
China had put some limits on selling these metals.
The leaders of the US and China recently talked and China said they would stop these limits for a year.
But the US official said they are worried China might not keep its promise.
So, the US said if China stops selling these metals again, the US will put more taxes (tariffs) on things China sells to America.
As a 'thank you' for China promising to be more reliable, the US will lower some taxes it already put on Chinese goods.
China also promised to try harder to stop illegal drugs called fentanyl from coming to the US.
The US is also trying to find ways to get these special metals from other places or make them itself so it doesn't have to rely so much on China.
US Treasury Secretary Scott Bessent warned that new tariffs could be imposed if China blocks rare earth exports.
China announced a one-year suspension of its previously imposed restrictions on rare earth materials and technologies.
The US is concerned about China's reliability as a partner in rare earth supply, despite the suspension.
As part of a broader agreement, the US will reduce tariffs on Chinese exports by 10%, and China will work to curb fentanyl exports.
The US administration is accelerating efforts to reduce its reliance on China for rare earth processing.
- Who
- US Treasury Secretary Scott Bessent, US President Donald Trump, Chinese President Xi Jinping
- What
- The US threatened to reimpose tariffs on China if it continues to block rare earth exports, following a one-year suspension of Chinese restrictions. A separate trade agreement also includes a 10% tariff reduction on Chinese goods and China's commitment to curb fentanyl exports.
- When
- China announced suspension of restrictions on Thursday; warning issued Sunday, October 30, 2025.
- Where
- South Korea (on the sidelines of the APEC Summit)
- Why
- To ensure reliable supply of rare earth metals, de-escalate trade tensions, and address the fentanyl crisis.
US Concerns
China's Actions
Reliability of Rare Earth Exports
US Concerns
The US expresses concern that China has not always followed through on commitments regarding rare earth exports and may prove to be an unreliable partner, leading to threats of renewed tariffs.
China's Actions
China announced a one-year suspension of its previously imposed restrictions on rare earth materials and technologies, signaling a willingness to ease export controls.
US Dependence on China
US Concerns
The US administration believes previous US governments were 'asleep at the switch' regarding China's rare earth strategy and is now working rapidly to 'de-risk' and reduce global reliance on China's processing monopoly.
China's Actions
While China holds a virtual monopoly on rare earth processing, it has agreed to suspend restrictions for one year, potentially maintaining its significant role in the global supply chain.
- China's Rare Earth Export Restriction Suspension
- China announced a one-year suspension of restrictions on rare earth materials and technologies.
- US Tariff Threat
- US prepared to raise tariffs if China blocks rare earth exports.
- US Tariff Reduction
- Washington to reduce tariffs on Chinese exports by 10%.
- Fentanyl Flow Mitigation
- China to take significant measures to reduce fentanyl flow to the US.
- US Rare Earth Strategy
- US administration aims to rapidly develop its own rare earth capabilities.
Sources
Trump and Xi’s big de-escalation: China and US decide to suspend retaliatory tariffs and measures
China to suspend some rare earth curbs, probes on US chip firms
Trump Should be Paranoid, Not Happy, That China’s Blinked on Rare Earth Metals
What did Trump, Xi agree to on tariffs, export controls and fentanyl
Meeting with Xi will bring 'everlasting peace': US, China de-escalate trade tension, suspend retaliatory tariffs
