China exporting 20% fewer rare-earth magnets to US despite trade truce

China is exporting about 20% fewer rare-earth magnets to the United States despite a bilateral trade truce meant to ease such friction, Bloomberg reported ([Bloomberg]( The drop points to continuing strain in critical-minerals supply even after Washington and Beijing agreed to step back from an escalating tariff war. Rare-earth permanent magnets — built around neodymium and other elements that China dominates in processing — are essential components in electric-vehicle motors, wind turbines, consumer electronics and defence systems. A sustained shortfall in US-bound shipments raises costs and supply risk for American manufacturers that have few near-term alternatives to Chinese processing. The truce struck earlier in 2026 was intended to stabilise trade in strategic goods and reassure global supply chains, but the reported 20% decline suggests the accommodation has not translated into freer flows. The figures add to uncertainty for automakers and clean-energy producers on both sides of the Pacific who rely on the magnets. For global markets, the data is a reminder that a headline trade agreement does not resolve the deeper contest over critical minerals. Investors and manufacturers continue to weigh the risk that export controls or licensing friction could tighten further, encouraging a renewed push to diversify magnet supply outside China. *Source Reporters corrects errors promptly. Report corrections to corrections@sourcereporters.com.*