President Donald Trump has labeled China’s recent export controls on rare-earth minerals as a ‘bad moment’, signaling the intensifying strain between the two nations over vital defense materials. The Trump administration is striving to ease the rising tensions following China’s decision to impose restrictions on rare-earth magnets, a key component in advanced military and civilian technologies. In response, the U.S. has warned of potential increased tariffs on Chinese goods to counter the move, escalating the trade conflict.
Rare-earth elements are essential for products such as electric vehicles, home appliances, lithium batteries, and camera lenses. These elements are crucial for national security because they are integral to the construction of numerous weapons systems. The export controls directly impact the U.S. defense supply chain, as these magnets are used in aircraft like the F-35 fighter jet, submarines such as the Virginia-class, missiles like the Tomahawk, and radar systems. For instance, a Virginia-class submarine contains over 9,200 pounds of rare-earth elements, and an F-35 jet contains more than 900 pounds.
China plays a central role in the production of rare-earth elements, responsible for mining approximately 60% of the world’s supply and processing nearly 90% of it by 2024. In early December 2025, China announced additional export controls on five rare-earth metals, bringing the total number of restricted elements to 12. Gracelin Baskaran of the Center for Strategic and International Studies (CSIS) noted that these controls will require foreign companies to secure Chinese approval to export magnets containing rare-earth elements or produced using Chinese technology, effectively limiting access to U.S. and allied military entities.
China’s restrictions have sparked a backlash from various U.S. lawmakers. Rep. John Moolenaar, the chairman of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, characterized the export controls as an ‘economic declaration of war,’ stating that every American would be negatively impacted. Moolenaar urged Trump to take action against China’s dominance in rare-earth magnets, including considering limiting Chinese airline access to U.S. and allied airports until the country lifts the restrictions.
Rep. Raja Krishnamoorthi, the ranking member of the committee, emphasized the need for the U.S. to find alternatives to reduce its reliance on China for these critical materials. He stated that the U.S. and its allies must increase efforts to diversify supply sources, strengthen partnerships, and invest in domestic processing. Meanwhile, Trump responded to China’s actions by threatening to impose 100% tariffs on Chinese goods and warned of the possibility of canceling his planned meeting with Chinese President Xi Jinping, which is slated for October.
Despite the growing tensions, Trump attempted to mitigate the situation by dismissing Beijing’s actions as a ‘bad moment’ and expressing his intention to help China rather than harm it. The Chinese Embassy in the U.S. has firmly rejected the U.S. restrictions and vowed to take necessary actions to protect its national interests, calling on the U.S. to correct its approach and adhere to the common understandings reached by the two presidents during their phone calls. U.S. Trade Representative Jamieson Greer noted that the U.S. wasn’t informed about the increased export controls in advance, with China deferring a call from Washington after the U.S. learned about the move from public sources.