China has announced retaliatory measures against the U.S., imposing export restrictions on five key metals—tungsten, tellurium, bismuth, indium, and molybdenum—essential for defense, clean energy, and various industries.
This move follows President Trump’s recent 10% tariff on Chinese imports. Beijing stated that export licenses will be required, but details on compliance criteria remain unclear. These restrictions signal escalating trade tensions between the two nations, potentially disrupting global supply chains for critical materials.
Although significant, these new restrictions are less severe than China’s December bans on gallium, germanium, antimony, and superhard materials. Some of the newly restricted metals may have little effect on U.S. industries.
For example, the U.S. is a major producer of molybdenum, a metal used to strengthen steel and prevent corrosion, and imports only a negligible amount from China, according to the U.S. Geological Survey (USGS).
Additionally, US tariffs on indium and tungsten—set at 25% since last year—have prompted American importers to diversify their supply chains. Over the past four years, China has accounted for less than 10% of US indium imports, while South Korea, Japan, and Canada have emerged as key suppliers, according to the USGS.
Nevertheless, vulnerabilities persist. The US stopped mining tungsten—a crucial mineral for alloys and specialty steels—in 2015 and has not produced refined bismuth since 1997, relying entirely on imports for both.
While China’s share of US tungsten imports has declined, it remains the dominant supplier, leaving American industries exposed to potential disruptions in the supply chain.
Retaliatory Tariffs
China’s finance ministry has announced new tariffs on US goods, set to take effect on February 10. The country will impose a 15% duty on coal and liquefied natural gas (LNG) imports while increasing tariffs by 10% on American crude oil, agricultural equipment, and certain automobiles.
Meanwhile, President Trump, now in his second term, has directed his administration to review China’s compliance with the 2020 trade agreement established during his first presidency. Economists suggest that the findings, expected by April 1, could lay the groundwork for additional tariff measures.
Trump previously launched a heated two-year trade war with China in 2018, targeting its substantial trade surplus with the US through reciprocal tariffs on hundreds of billions of dollars in goods. The standoff disrupted global supply chains and weighed on the world economy.
In 2020, China agreed to boost its annual purchases of US goods by $200 billion to resolve the dispute. However, the COVID-19 pandemic derailed the deal, and China’s trade deficit with the US expanded to $361 billion last year, according to customs data released in December.
