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US–China Trade War Reignites

What It Means for Rare Earths and Global Supply Chains

The long-standing trade tensions between the United States and China have flared up once again, this time centered on rare earth materials and newly proposed tariff measures. These developments could reshape the global electronics and semiconductor supply network, influencing how manufacturers source and produce critical components.

A New Phase in the Trade Conflict

According to Le Monde, China has tightened export controls on goods containing rare earth elements, materials vital for the production of electric vehicles, renewable energy technologies, and microelectronics.

In response, the U.S. has announced plans for a 100% tariff on Chinese imports beginning November 1, alongside new restrictions on the export of software tools used in microchip design. These actions have already triggered market volatility, with the technology sector feeling the first wave of uncertainty.

Why Rare Earths Matter

Rare earth elements like neodymium, dysprosium, and terbium are key ingredients in magnets, sensors, and precision components used across the electronics industry. While they are not truly “rare,” they are difficult and costly to extract and refine, a process that China dominates globally.

Any disruption in this supply chain, whether through policy changes or trade restrictions, can quickly lead to shortages, delayed production, and price spikes. For global manufacturers, even a small shift in availability can ripple through the entire industry.

EU Implications for Europe and the Electronics Industry

For European manufacturers and distributors, including suppliers of semiconductors, relays, and electronic components, the impact could be significant:

Supply chain vulnerability: Limited access to rare earths may drive up production costs and create delays in component availability.
Rising costs: Manufacturers may face higher expenses as sourcing routes shift or materials become scarce.
Innovation slowdown: Restrictions on technology exchange can slow global R&D and collaboration.
Strategic diversification: The European Union is expected to accelerate domestic refining, recycling programs, and partnerships with alternative source countries.

At Zenka Europe, we closely monitor these developments to keep our partners informed and prepared. Our proactive sourcing strategies and transparent communication ensure customers continue to receive reliable, high-quality components, even during global market disruptions.

Looking Ahead

As trade tensions evolve, the next few months will test the adaptability of global supply chains. Europe’s ability to secure alternative sources of critical raw materials and strengthen local production will define its long-term resilience.

Zenka Europe remains committed to helping clients navigate these challenges through trusted supplier networks, strategic sourcing solutions, and a consistent focus on reliability and trust.

Source: “U.S. and China reignite trade war with focus on rare earths and tariffs,” Le Monde, October 12, 2025.

Read the full article on Le Monde:

https://www.lemonde.fr/en/international/article/2025/10/12/us-and-china-reignite-trade-war-with-focus-on-rare-earths-and-tariffs_6746343_4.html