China Imposes Export Restrictions on Five Critical Metals Amid Rising U.S. Tariffs

China announced new export restrictions on five critical metals on Tuesday, shortly after U.S. President Donald Trump imposed an additional 10% tariff on Chinese goods. The restrictions apply to tungsten, tellurium, bismuth, indium, molybdenum, and related products, which are essential in defense, clean energy, and various industrial sectors.

The Chinese Commerce Ministry stated that the new rules, aimed at "safeguarding national security interests," will require exporters to obtain licenses. These metals are used in products ranging from solar panels and electric car batteries to artillery shells and infrared missiles.

While the measures stop short of outright export bans, they reflect China's ongoing strategy since 2023 to leverage its dominance in mining and processing critical minerals. This approach marks a more measured response compared to previous bans targeting the United States.

Jessica Fung, head of Consulting at Project Blue, noted that markets had anticipated expanded controls, particularly after China’s December 2023 ban on antimony exports to the U.S. The announcement is expected to drive up prices outside China. Tungsten and indium price indices reached their highest levels in over a decade by late January, even before the new restrictions were formally introduced.

Historically, similar export restrictions have led to immediate drops in shipments as companies navigate the licensing process, which typically takes around six weeks. Although exports tend to recover gradually once licenses are granted, it is unclear if shipments destined for the U.S. will be approved. The U.S. has not mined tungsten since 2015 and ceased refined bismuth production in 1997, relying heavily on imports for both metals.