Trump tariffs: China's rare earth export curb may take toll on Lockheed Martin, Tesla and Apple. Here's how

As the trade war between China and the United States intensifies, Beijing has put on hold exports of rare earth minerals and magnets, squeezing supplies of components central to American manufacturers of aerospace, semiconductors, electronics, consumer goods, weapons, and automakers.

China has placed export curbs as part of its sweeping response to US President Donald Trump's reciprocal tariffs, forcing producers to grapple with tighter permit requirements.

The delays could take weeks to clear as questions including code classification are clarified, reported news agency Bloomberg citing people with knowledge of the issue.

The move has further ratcheted up trade tensions between the world's two largest economies.

Beijing dominates the complex and dirty refining process for rare earths and controls output via a quota system that it has tightened.

The move is likely to galvanise efforts in the West to build alternative supply chains.

Dependence on Chinese Supplies

For decades, American companies have relied upon supplies of critical minerals from China.

The Asian nation produces around 90 per cent of the world's rare earth minerals, a group of 17 elements used across the defence, electric vehicle, energy and electronics industries.

The US has only one rare earth mineral mine and most of its supply comes from China.

Honeywell, Lockheed Martin, Tesla and Apple are among the big US companies that use Chinese rare earth minerals in their manufacturing.

The move, which affects exports to all countries, is the latest demonstration of China's ability to weaponise its dominance over the mining and processing of critical minerals.

The export curbs include mined minerals, permanent magnets and other finished products that will be difficult to replace for American manufacturers.

Seven categories of medium and heavy rare earth minerals, include samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items.

The latest controls are expected to have broad impacts not just in the US, but also in Europe and Japan due to the wide usage of these minerals, which also includes optical lasers, radar devices, magnets for wind turbines, jet engine coatings and other advanced technologies.