Trump secures deal for 15% tariff on South Korean imports
The U.S. will impose a 15% tariff on imports from South Korea under a new trade deal that also includes a $350bn (about £264bn) South Korean investme...
China’s export restrictions on rare earths have bolstered its geopolitical hand but triggered steep losses and production cuts for its magnet manufacturers, already hit by weak domestic demand and shrinking overseas sales.
The export curbs, imposed in April in response to U.S. tariffs, slashed magnet exports by 75% in two months and forced several global automakers to pause production. While China dominates rare-earth magnet production, exports accounted for up to half of revenue for some major producers in 2024.
Baotou Rare Earth Products Exchange, a state-backed trading platform, said the restrictions had created a “crisis” for some manufacturers and warned that any recovery, even after a U.S.-China deal in late June to resume rare-earth flows, would take time to implement. Inventory has continued to build in warehouses.
“Their sales are now being squeezed from both ends – disrupted exports and flagging domestic demand,” said Ellie Saklatvala, head of metal pricing at Argus.
“They have temporarily lost an important part of their customer base, with no certainty about when they will regain it.”
Two rare-earth magnet producers told Reuters that revenue is expected to fall this year, though they declined to be named due to the sensitivity of the issue. Small and medium-sized producers cut output by around 15% in April and May, according to a source familiar with the situation.
The highly customised nature of many magnet products makes it difficult to reroute them into the domestic market, forcing producers to store unsold cargo while awaiting export licences.
Though listed firms such as Baotou Tianhe Magnetics Technology Co and Yantai Zhenghai Magnetics have acknowledged the risks, most of China’s magnet industry remains private, limiting visibility into the full impact. Analysts say recent share price rebounds may not reflect underlying challenges.
The controls echo previous Chinese export restrictions on other critical minerals such as germanium and antimony.
Despite mainly civilian uses, exports of those materials have yet to fully recover, and similar delays are expected in the rare-earth sector.
David Abraham, a professor at Boise State University, said the increased paperwork and oversight introduced by China’s export licensing regime would have long-term effects.
“In some sense, there's no going back,” he said, noting that the resulting pressure may drive consolidation in an already fragmented industry.
Analysts say further consolidation could suit Beijing’s broader strategy of reinforcing control over the supply chain while leveraging rare earths in geopolitical negotiations.
The world’s biggest dance music festival faces an unexpected setback as a fire destroys its main stage, prompting a last-minute response from organisers determined to keep the party alive in Boom, Belgium.
Australian researchers have created a groundbreaking “biological AI” platform that could revolutionise drug discovery by rapidly evolving molecules within mammalian cells.
Australian researchers have pioneered a low-cost and scalable plasma-based method to produce ammonia gas directly from air, offering a green alternative to the traditional fossil fuel-dependent Haber-Bosch process.
A series of earthquakes have struck Guatemala on Tuesday afternoon, leading authorities to advise residents to evacuate from buildings as a precaution against possible aftershocks.
'Superman' continued to dominate the summer box office, pulling in another $57.25 million in its second weekend, as theatres welcome a wave of blockbuster competition following a challenging few years for the film industry.
The U.S. will impose a 15% tariff on imports from South Korea under a new trade deal that also includes a $350bn (about £264bn) South Korean investment in the U.S., President Donald Trump has announced.
Canada plans to recognize the State of Palestine at the UN General Assembly in September, Prime Minister Mark Carney announced Wednesday, joining France and the UK in ramping up pressure on Israel.
U.S. President Donald Trump has announced sweeping 50% tariffs on Brazilian imports, citing concerns over judicial overreach and human rights violations. Yet major economic sectors were spared, following weeks of negotiations and lobbying from businesses on both sides.
An estimated 80,000 children are vulnerable to cholera in West and Central Africa amid ongoing outbreaks and the onset of heavy rains, according to the United Nations.
With just one day left until Donald Trump’s 1 August tariff deadline, the U.S. has announced trade deals with several countries, but many remain incomplete or lacking firm commitments.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment