China Rare-Earth Exports to US Hit Multi-Year Low Despite Trade Truce
China's monthly rare-earth magnet exports to the US averaged 479 tons in the first half of 2026, the lowest since 2021 and 22% below the 2022-2024 average. The decline persists despite an October truce between Presidents Trump and Xi that promised continued flows.
China's rare-earth magnet shipments to the US remain sharply restricted. Monthly exports averaged 479 tons in H1 2026, putting the year on track for the lowest average since 2021. That compares with an average of 586 tons per month from 2022 to 2024, a roughly 22% drop.
The shortfall comes despite the October trade truce between President Trump and President Xi, under which China pledged to keep rare-earth magnets flowing as part of pausing the broader trade war. The components are critical for electric vehicles, industrial automation, and defense, making secure access a priority for US manufacturers.
China controls over 90% of global rare-earth magnet production, leaving US industries heavily dependent on its supply. The sustained low export volume signals that the promised flow has not materialized, raising concerns about supply-chain vulnerabilities.
Source: The Kobeissi Letter