JAKARTA - China restricts exports of 7 types of minerals and additional tariffs to the United States (US) starting 4 April, in response to the 34% reciprocal tariff imposed by President Donald Trump.

China's decision is said to tighten the supply of materials important to the defence, electronics, and electric vehicle industries in the US.

China is currently the producer of 90% of the world's rare minerals. Some of these include samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and itrium-related items.

Not only that, China also restricts exports to the US of permanent magnet products and other products that are still difficult to replace.

‘They chose elements that are very important to the US economy,’ Mel Sanderson, Director of American Rare Earths, was quoted as saying by Reuters.

China is currently not implementing the restrictions in full. However, restrictions are starting to be applied through restrictions on export licences to the US.

A number of technology and automotive companies are expected to be hit by China's policies. Starting from Tesla, Apple, and Lockheed Martin.

In addition, the US is also expected to seek alternative supply chains for processing rare minerals. However, industry players admit that alternative supply chains will require time and substantial funding.

‘America must secure the end-to-end rare mineral supply chain to protect its industrial and national security,’ said MP Materials, the only company with rare mineral mines in the US.

Not only restricting rare mineral exports, China also imposed an additional 34% tariff on products imported from the US. This tariff will take effect on 10 April 2025. (KR/LM)