Overview

• China has paused export restrictions on seven key rare earth elements and military-use technologies for 28 U.S. entities, effective May 14, for 90 days.
• The agreement, reached on May 12, includes reductions in reciprocal tariffs and a suspension of non-tariff measures imposed since April.
• China’s export curbs in early April had caused prices of some rare earth elements to surge by over 200% in global markets, underscoring supply chain vulnerabilities.
• The U.S. remains heavily reliant on China, which controls approximately 90% of global rare earth production, with dominance in heavy rare earths reaching up to 99%.
• The U.S. is accelerating efforts to reduce dependence, leveraging domestic mining, recycling, and exploring alternative sources abroad to secure critical supplies.