The total shipments reached 5,865 tons, still falling short of last year’s figures. However, the significant rise last month raised the year-to-date total by 2.3% to 24,827 tons. Notably, this data excludes rare earth products, which encompass high-value magnets used in electric motors and hard-disk drives.
Discussions on rare earths will dominate later today when negotiators convene in London to address the tensions between the world’s two largest economies. Key issues include China’s export restrictions on rare earth minerals and magnets, which are extensively utilized in high-tech and defense manufacturing.
The customs statistics released on Monday provide only a partial view of the implications of China’s restrictions, which pertain solely to global sales of seven specific elements. These measures were introduced on April 4 in response to punitive tariffs imposed on Chinese goods by President Donald Trump. China represents nearly 70% of the global production of rare earths.
Data regarding rare earth products for May is expected to be published on June 18. A detailed breakdown of export destinations should be available by June 20.
Last month, China seemed to ease its restrictions following a May 12 announcement that both nations had agreed to reduce tariffs and other trade barriers. Subsequently, the US alleged that Beijing was delaying sales, although such delays might be attributed to extended lead times in China’s permitting processes. European trade officials and automakers have also raised concerns about supply disruptions stemming from China.
On Saturday, the Chinese government announced it had approved certain rare earth exports but did not specify which countries or industries were affected, potentially aiding in Monday’s discussions with the US.
April’s customs data indicated a 37% drop in rare earth and product sales to the US compared to March, totaling approximately 1,700 tons. Within this category, sales of rare earth magnets suffered a sharper decline of 58%, amounting to 246 tons. Global magnet sales were down by 51%, nearing 2,600 tons.
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First Published: Jun 9, 2025 11:07 AM IST