China Tightens Rare-Earth Controls, Trump Threatens Tariffs

China has introduced new export controls on rare earths that Beijing says are not an outright ban, prompting sharp U.S. criticism and a tariff threat from President Donald Trump.

The measures restrict exports to U.S. defense contractors and bar technologies tied to extraction, processing, magnet production and equipment servicing. From Dec. 1, foreign entities will need a license to export products containing more than 0.1% of minerals sourced from China. China’s Ministry of Commerce says exports for civil use will be approved and frames the rules as lawful steps to prevent illicit diversion for weapons and to safeguard national rights.

Rare-earth elements—17 metals crucial for EV motors, radar, semiconductors and AI hardware—are a strategic supply-chain bottleneck: China supplies more than two-thirds of global output. U.S. officials, including Trade Representative Jamieson Greer, call the move a global supply-chain power grab and warn of consequences if the regime proceeds. Trump has threatened a 100% tariff in retaliation; current U.S. tariffs on Chinese goods are about 30%, with Chinese retaliatory tariffs near 10%.

Officials from both sides say talks continue. Markets and strategic technology producers are watching for whether measures will be rolled back ahead of planned high-level talks at the end of the month.