US–China trade tensions and impacts on rare earth supply chains (2018–2022)

1. USTR launches Section 301 investigation of China

   Aug 24, 2017Labels: USTR, Section 301

   The U.S. Trade Representative (USTR) opened a Section 301 investigation into China’s technology-transfer and intellectual property practices. Although not focused only on minerals, the investigation set the legal pathway for tariffs that would later hit many industrial inputs and reshape U.S.–China supply chain planning. This new policy direction increased attention on China-linked dependencies, including rare earths and related manufacturing.

   • USTR
   • USTR Fact

2. U.S. issues critical minerals Executive Order 13817

   Dec 20, 2017Labels: Executive Order, U S

   The U.S. government formally elevated “critical minerals” as a national priority with Executive Order 13817. The order directed agencies to develop a federal strategy to secure mineral supplies that are important for the economy and national security. This framing helped connect rare earth supply chain risk to broader U.S.–China strategic competition.

   • DOI
   • IEA

3. USTR publishes Section 301 findings on China

   Mar 22, 2018Labels: USTR, Section 301

   USTR released its report concluding that certain Chinese practices related to technology transfer, intellectual property, and innovation were unreasonable or discriminatory and burdened U.S. commerce. The report became a key justification for subsequent tariff actions. Over time, those tariff rounds contributed to higher costs and uncertainty for U.S. manufacturers that rely on China-centered industrial supply chains.

   • USTR Report
   • USTR Fact

4. First Section 301 tariffs take effect (List 1)

   Jul 6, 2018Labels: Section 301, List 1

   The United States began imposing 25% tariffs on approximately $34 billion of Chinese imports under Section 301. China retaliated with tariffs on an equivalent value of U.S. exports. While rare earths were not the only target, the move increased supply chain risk awareness for industrial inputs tied to China, including components that use rare earth materials.

   • USTR
   • CRS

5. Tariff escalation expands coverage (List 3)

   Sep 24, 2018Labels: Section 301, List 3

   Additional U.S. Section 301 tariffs broadened to cover a much larger set of imports from China (List 3), first at 10% and later increased. These changes pushed more manufacturers to reassess supplier locations, inventory levels, and contract terms. For rare earth supply chains, the bigger effect was the rising probability that trade measures could spill into critical materials and downstream parts such as magnets.

   • CRS
   • USITC

6. China signals rare earths as possible leverage

   May 22, 2019Labels: China government, rare earths

   As U.S.–China tensions intensified in 2019, Chinese officials and state media hinted that rare earth exports could be used as a bargaining tool. This raised concerns because rare earth elements are inputs for defense systems, electronics, and clean energy technologies. The episode helped accelerate U.S. efforts to reduce reliance on China for processing and magnet supply.

   • Axios
   • CNBC

7. Phase One trade agreement signed; most tariffs remain

   Jan 15, 2020Labels: Phase One, U S

   The United States and China signed the “Phase One” trade agreement, reducing some tariffs while leaving many Section 301 measures in place. This partial de-escalation lowered the risk of immediate new tariff rounds, but it did not remove the underlying supply chain uncertainty. Companies sourcing rare earth-related inputs still faced a policy environment where trade restrictions could return or broaden.

   • Wiley
   • EY

8. DoD funds early work to rebuild rare earth capacity

   Apr 22, 2020Labels: DoD, MP Materials

   The U.S. Department of Defense (DoD) selected MP Materials for a contract aimed at restoring domestic heavy rare earth production capability. The announcement reflected growing concern that U.S. defense needs depended on processing and separation steps dominated by China. It also marked a shift from problem statements toward federally supported industrial projects.

   • MP Materials

9. U.S. declares critical minerals supply chain emergency

   Sep 30, 2020Labels: Executive order, critical minerals

   An executive order declared that U.S. reliance on critical minerals from “foreign adversaries” posed an unusual and extraordinary threat, and it explicitly highlighted rare earth import dependence on China. The order directed a government investigation and contemplated tools such as tariffs or quotas. It reinforced rare earths as a strategic supply chain issue, not only a market or industrial policy concern.

   • White House

10. DoD announces multiple rare earth supply chain awards

    Nov 17, 2020Labels: DoD, Defense Production

    DoD announced several awards under Defense Production Act (DPA) authorities and related programs to strengthen the domestic rare earth supply chain. These included support for light rare earth processing and work related to rare earth magnets. The action showed a policy shift from identifying vulnerability to funding specific capabilities that could reduce China-linked choke points.

    • DoD

11. Biden signs EO 14017 on supply chain resilience

    Feb 24, 2021Labels: Executive Order, Biden administration

    President Biden issued Executive Order 14017, directing a whole-of-government approach to reviewing and strengthening critical supply chains. Rare earth elements and downstream products (like permanent magnets) were part of the broader concern about vulnerabilities in key industrial inputs. The order helped anchor rare earth supply chain security as an ongoing priority across administrations.

    • Presidency
    • CISA

12. 100-day supply chain reviews highlight action agenda

    Jun 8, 2021Labels: 100-day reviews, EO 14017

    The administration released findings from reviews ordered under EO 14017 and announced steps to address supply chain problems. Even though the reviews covered multiple sectors, the message was consistent: shortages and geopolitical risk required resilience measures like diversification, domestic capability, and stockpiles. This environment supported continued investment in rare earth processing and magnet supply chains outside China.

    • Presidency

13. DoD backs U.S. heavy rare earth separation at Mountain Pass

    Feb 22, 2022Labels: DoD, MP Materials

    DoD awarded MP Materials $35 million to design and build a facility to process and separate heavy rare earth elements at Mountain Pass, California. Heavy rare earths are especially important for high-performance magnets used in defense and clean energy applications. The award was intended to reduce U.S. exposure to China-dominated processing and provide a more secure supply base.

    • DoD

14. DoD supports Lynas heavy rare earth facility plan

    Jun 14, 2022Labels: DoD, Lynas USA

    Lynas USA signed a follow-on contract (about $120 million) with DoD to establish a commercial heavy rare earth separation facility in the United States, planned for Texas. The project aimed to create a non-China source of separated heavy rare earths needed for magnets and other advanced products. By the end of 2022, U.S.–China trade tensions had not disappeared, but the U.S. response increasingly centered on building alternative capacity rather than relying on quick tariff changes.

    • Lynas
    • C EN