Garnet Is Monitoring the Situation to Ensure Your Operational Continuity

In recent days, the international trade of rare earth elements and permanent magnets has entered a phase of uncertainty due to new export restrictions introduced by the Chinese government.

These developments are closely tied to the recent U.S. tariff policies, which prompted China to respond not only with 34% counter-tariffs, but also with strategic limitations on the export of critical materials, including rare earths.

“China has not only announced 34% counter-tariffs but has also decided to impose restrictions on the trade of rare earth elements,” reports Start Magazine this week.

Rare earths are essential to the manufacturing of smartphones, electric vehicles, wind turbines, fighter jets, and more. China currently dominates the entire supply chain for these materials.

What Are Rare Earths and Why Do They Matter?

Rare earths are a group of 17 chemical elements that play a vital role in the development of advanced technologies. They are used in:

  • Electric motors and high-efficiency actuators
  • Clean energy solutions (e.g., wind turbines)
  • Electronics and defense systems
  • Aerospace technologies

They are indispensable in the production of high-performance permanent magnets, such as:

  • Neodymium-Iron-Boron (NdFeB)
  • Samarium-Cobalt (SmCo)

Garnet has long supplied these materials to clients across industrial automation, precision electronics, and automotive sectors.

What Changes for Importers?

China’s newly introduced export restrictions apply not only to raw materials, but also to finished products, including permanent magnets.

Affected rare earths include:

  • Samarium
  • Gadolinium
  • Terbium
  • Dysprosium
  • Lutetium
  • Scandium
  • Yttrium

Importing from Chinese suppliers will now require updated export licenses, with new compliance requirements currently under development. These rules affect all importing countries, not just the U.S.

Strategic Impact for Global Supply Chains

The rare earth supply chain is a geopolitical priority. With China controlling over 90% of global refining capacity, any regulatory shift causes significant ripples across international industries.

European manufacturers that rely on rare earth magnets for:

  • Brushless motors
  • Encoders and sensors
  • Medical equipment
  • Energy systems

must now adapt quickly to ensure continued availability and cost stability.

 Garnet’s Commitment: Continuity and Support

Thanks to our operational headquarters in Ningbo, China, Garnet is in direct contact with both local manufacturers and government authorities. We monitor every regulatory update in real time.

We are already working to:

  • Evaluate the impact of the new restrictions
  • Explore alternative sourcing strategies
  • Maintain transparent communication with our customers
  • Guarantee a reliable and proactive supply chain

 Custom Support from Garnet

True to our mission, Garnet doesn’t just supply components — we provide full consulting and operational support, including:

  • Order planning and risk management
  • Inventory optimization strategies
  • Live updates on regulatory developments
  • Alternative supplier evaluations

We invite all clients to stay updated via our website and to contact our Sales Office for personalized support:

📧 sales@garnetitalia.com