The trade truce was supposed to fix things. In October 2025, after months of escalating tariffs and export bans, Trump and Xi sat down and hammered out what both sides called a path forward. Seven months later, rare-earth magnet shipments from China to the US remain well below pre-war levels, and the gap is getting harder to ignore.
The numbers paint a grim picture
US imports of rare-earth magnets during January and February 2026 fell 22% compared to the same period in 2025. Measured against 2024 levels, they were still down 11%.
The trouble started in April 2025, when China slapped stringent export controls on rare earth elements and permanent magnets. Beijing framed it as a national security measure. Washington saw it as retaliation. Either way, the effect was immediate: shipment volumes cratered, and US companies dependent on Chinese supply found themselves scrambling.
The October truce was meant to ease the pressure. It didn’t. Monthly export flows from China have remained volatile and unpredictable, with licensing practices shifting in ways that make long-term planning nearly impossible for American importers.
