US to impose 25% import tariffs on Chinese rare earth magnets in 2026

The US government announced on Tuesday May 14 that new Section 301 import tariffs will be imposed on a wide range of Chinese products and materials, including electric vehicles, steel and aluminium, semiconductors, batteries, solar cells and permanent magnets

“Following an in-depth review by the United States Trade Representative, President [Joe] Biden is taking action to protect American workers and American companies from China’s unfair trade practices,” the White House said.

Imports of Chinese permanent magnets will be subject to a 25% tariff beginning in 2026, the White House statement said.

“There are several types of permanent magnet but around 80% of the market is dominated by two of them: sintered neodymium iron boron [NdFeB] rare earth magnets, and hard ferrite magnets,” John Ormerod, head of magnetics and metal consultancy JOC, said.

Other types include samarium cobalt rare earth magnets, alnico (aluminium-nickel-cobalt) and bonded NdFeB rare earth magnets.

Sintered NdFeB rare earth magnets are critical components in the motors of electric and hybrid vehicles and in offshore wind turbines, along with many other industrial, defense, medical and electronics applications.

The first time critical minerals have been included in tariffs

There have been numerous rounds of Section 301 tariffs since the start of the US-China trade and technology war in 2018, but none of them has included rare earth magnets or materials.

According to Tuesday’s statement, “the tariff rate for certain other critical minerals will increase from zero to 25% in 2024.”

“This action will help to level the playing field for domestic producers, giving US industry the time it needs to scale and develop in a manner that aligns with America’s vital national interests,” Jim Litinsky chief executive of US rare earth producer MP Materials, said.

MP Materials owns and operates the Mountain Pass light rare earth mine in the US state of California, and is developing a sintered neodymium iron boron magnet plant in the state of Texas.

Our team of rare earths experts and price reporters provide weekly rare earths prices and market analysis. Find out more about all our rare earths prices.

What to read next
Explore the implications of the 50% tariff on the pulp market, impacting trade dynamics and costs for industries reliant on pulp.
The global copper market has finally received the widely anticipated news that imports to the US will be tariffed from August 1. The finer details of the tariffs, including their scope, and whether key copper-exporting nations like Chile, Canada and Peru will be exempt, remain unclear.
Understand how recent tariff decisions are affecting the European pulp and paper industry and trade with the US market.
Battery recyclers remain under pressure, with tight margins among black mass producers and refiners amid a host of challenges for the industry, according to delegates at Fastmarkets Lithium Supply and Battery Raw Materials Conference 2025, which took place in Last Vegas, Nevada, from June 23-26
The 2025 Fastmarkets Lithium Conference in Las Vegas highlighted critical issues shaping the battery supply chain, including lithium oversupply, funding struggles and the need for midstream investment. Discussions also emphasized the importance of interdependence with China and the challenges faced by recyclers amid policy uncertainty and market headwinds.
Tariff concerns and opaque import regulations dominated discussions among aluminium and copper scrap market participants at the 2025 ASEAN Recycling Metals International Conference held in Thailand on June 18-20.