China Escalates Trade Conflict with Rare Earth Export Controls and Tariffs

Beijing restricts seven key rare earth elements and imposes a 34% tariff on U.S. goods in response to increased American tariffs.

China has implemented export controls on seven rare earth elements, including terbium, dysprosium, and yttrium, effective April 4, 2025.
The restrictions target global markets, with the U.S. particularly vulnerable due to its reliance on China for 75-78% of its rare earth imports.
China's Ministry of Finance announced a 34% tariff on all U.S. goods, set to take effect on April 10, in retaliation for U.S. tariffs on Chinese imports.
The measures have caused significant disruptions in global markets, with U.S. stock indices like the Dow Jones and NASDAQ experiencing steep declines.
China's actions underscore its strategic use of resource dominance in geopolitical disputes, continuing a pattern of leveraging rare earths in trade tensions.