China has expanded its rare earth export freeze beyond the United States to all countries, causing global concern across multiple industries. The action came just two days after President Donald Trump announced new "reciprocal tariffs" on April 2, which his administration called "Liberation Day". Beijing's response has halted exports of rare earth minerals and magnets made from them worldwide.

The export freeze was implemented through a requirement for special licenses that have not yet been made available. According to The New York Times, Chinese customs authorities are blocking shipments not only to the US but also to allies like Japan and Germany. This action was jointly enforced by China's Ministry of Commerce and the General Administration of Customs.

China controls approximately 70% of global rare earth production and processes an even larger share. These minerals are essential components in smartphones, electric vehicle batteries, wind turbines, semiconductors, and military equipment like guided missiles and fighter jets. While relatively small in dollar value, rare earth exports have substantial strategic importance.

Multiple sectors are already experiencing effects from the export freeze. The tech industry needs rare earths for smartphones, chips, and hard drives. Automakers, including both EV manufacturers like Tesla and traditional companies, rely on these materials for motors and batteries. The aerospace and defense sectors, which use rare earths in radar systems and stealth technology, face potential supply chain issues.

Kevin Hassett, Director of the National Economic Council, acknowledged on Monday that "Rare earths are a part of lots of the economy," adding that the government is "studying the limits very carefully." The Trump administration has taken several steps to reduce US dependence on Chinese rare earths.

The White House has issued an executive order directing federal agencies to identify domestic rare earth mining opportunities. Vice President JD Vance visited Greenland, which has one of the world's largest known rare earth deposits. The US is also negotiating with Ukraine for access to rare earth resources and considering seafloor mining options through another planned executive order.

Despite these efforts, experts note that rebuilding domestic production and processing capabilities could take years. Meanwhile, Japan, the EU, and the US are seeking alternative sources in countries like Australia and Malaysia. Setting up new rare earth infrastructure remains expensive, environmentally challenging, and time-consuming, leaving global industries vulnerable to China's future decisions.