The U.S. has rare earth magnets in China for possible tariffs

The Biden administration is examining whether imports of rare earth magnets made in China are largely a threat to national security that could ensure the establishment of tariffs.

The White House said the trade department will look into whether or not to punch neodymium magnets, which are used to make smartphones and phones. electric vehicle motors.

President Joe Biden is taking the measures presented by the White House on Tuesday Encourage the strength of US supply chains rare earths, including food and medicine, are among the concerns about China’s over-dependence.

The administration will decide to investigate the effects of national security on imports of neodymium magnets under section 232 of the 1962 Trade Act, which was rarely used by former President Donald Trump justify tariffs on steel and aluminum imports from U.S. allies.

“In the case of neodymium magnets, these tariffs would be directed directly at China, which dominates their manufacturing,” said Martijn Rasser, a technology expert at the New America Center for Security in Washington. “If tariffs are high enough, that can provide economic incentives to build the U.S. domestic industry.”

Washington is increasingly concerned China’s dominance in rare lands, 17 metal elements used in the manufacture of commercial goods, such as computer hard drives and military products such as radar, sonar and precision-guided missiles.

The Financial Times reported in February that it was China study to limit export Rare land used to produce F-35 fighter jets.

“We are quite dependent on imports of rare earth neodymium magnets, especially from China. It is another tool we can use to support Article 232… Reduce our dependence,” a senior U.S. official said.

“We don’t want to wage a trade war with our allies and partners,” the official added.

When Biden ordered the supply chain to be reviewed, he made it a priority semiconductors, rare earths, pharmacies and batteries for electric vehicles.

Officials said the administration would use the Defense Production Act – a 1950 Korean-era law to force the U.S. to prioritize industry contracts to help national security – to return 50-100 critical drug production abroad.

The Department of Energy plans to release a 10-year plan to develop a home supply chain for lithium batteries, which is critical for electric vehicles, and will immediately use $ 17 billion in lending facilities to support that effort. The Department of Agriculture will make a separate $ 4 billion commitment to help strengthen and diversify U.S. food supply chains.

Biden will also try to organize a forum with allies to encourage supply chain cooperation. He is also the same the subject is expected to be discussed following next week’s EU-US summit in Brussels at the G7 Cornwall.

The official said the administration will create a “trade strike force” led by U.S. Trade Representative Katherine Tai, which will propose enforcement actions against countries that engage in unfair trade practices that will erode the resilience of U.S. supply chains.

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