The trade conflict between the United States and China is taking a serious turn. Beijing is now limiting exports of rare earth elements—critical materials used in technology and defense. Instead of just tariffs, China is using its control over these minerals as a powerful weapon.
The move has revealed just how dependent America is on China for these materials. In response, the U.S. government is trying to produce more rare earths at home. President Trump has asked the Commerce Department to fix this problem fast. But why are these rare earths so important, and what could happen next?
Rare Earths: Tiny Elements, Huge Impact
Rare earths are a group of 17 special elements. They are not rare in the earth’s crust, but they are hard to find in a pure form. Mining and processing them is expensive and often harmful to the environment.
These elements power much of our modern world. Neodymium is used in strong magnets for electric cars, wind turbines, and computer hard drives. Yttrium and Europium help screens on TVs and phones look brighter and sharper. Rare earths are also key parts of medical machines, laser tools, and military weapons.
Thomas Kruemmer, a trade expert, says nearly every device that switches on and off contains rare earths. This includes smartphones, cars, aircraft, and even some kitchen appliances.
China’s Control Over the Global Supply
China leads the world in both mining and refining rare earths. Refining is the process that turns ore into a usable material. According to the International Energy Agency, China mines 61% and refines 92% of all rare earths.
Processing rare earths can release harmful waste and even radioactive materials. Many countries avoid this because of strict environmental laws. China, however, invested in this industry early. Since the 1990s, it has built a huge lead by allowing lower labor and environmental standards.
In 1992, Chinese leader Deng Xiaoping said, “The Middle East has oil; China has rare earths.” That statement has come true. Today, China’s control of the rare earth supply chain gives it huge power in global trade.
New Export Rules Target U.S. Defense
China has now placed limits on seven rare earth elements, mostly heavy ones. These are harder to extract and even more important for high-tech uses. Companies must get special licenses to export these materials as of April 4.
This move targets U.S. defense systems. These heavy rare earths are needed in radar systems, jet engines, missile parts, and more. The Center for Strategic and International Studies (CSIS) warns that no other country can refine these materials at China’s scale.
The U.S. Geological Survey says that from 2020 to 2023, 70% of America’s rare earth imports came from China. Losing access could hurt the production of F-35 fighter jets, Tomahawk missiles, and drones like the Predator.
The Risk to the U.S. Economy and Security
China’s decision is a big problem for both U.S. defense and business. Tech companies could also be hit, as rare earths are used in phones, laptops, and electric vehicles.
President Trump has launched a probe to study how dangerous this foreign reliance is. He has asked the government to support domestic mining and find new sources. A White House order says rare earths are critical for national strength and economic health.
But change won’t be easy. Right now, the U.S. only has one rare earth mine. It can’t refine heavy rare earths. All the ore must still go to China.
Trying to Find New Partners
To fix this, the U.S. is looking at other countries with rare earth resources. One option is Ukraine. Another is Greenland, which has large reserves. Trump even made headlines for suggesting the U.S. buy Greenland.
Still, building strong partnerships is not easy. Some of these countries worry about U.S. foreign policy and aggressive trade moves. Dr. Gavin Harper, an energy expert, says the U.S. risks losing allies by pushing too hard.
Long-Term Solutions and Setbacks
Even if the U.S. finds new sources, building mines and refining plants will take years. These projects also need billions of dollars in investment. Plus, the U.S. has tough laws that slow down permits and construction.
Harper warns that even with help from allies, it will cost more to make rare earths in America. Prices of phones, cars, and military tools may go up. Production could slow down.
Meanwhile, China continues to grow its own tech and military power. Experts say China can now produce defense systems five times faster than the U.S. If this trend continues, America could fall behind in key areas.
A New Era of Strategic Conflict
The rare earth battle shows how trade wars have changed. It’s no longer just about taxes on goods. Now, it’s about control of resources that power the world.
If the U.S. wants to stay strong, it must build a new supply chain for rare earths. This means more mining, better refining, and smarter partnerships. But time is short, and China is moving fast.