U.S. Trade Act Section 301 Tariffs Take Effect, Reshaping Cost Structure for Permanent Magnet Imports
Views: 1 Author: Site Editor Publish Time: 2026-02-06 Origin: Site
According to the latest industry developments, a significant U.S. trade policy officially came into force on January 1, 2026. While market focus over the past year has largely been on the 2025 "Executive Tariffs," the tariff increases authorized under Section 301 of the Trade Act of 1974 have now been activated after years of phased implementation. This policy change is entirely separate from the executive actions based on the International Emergency Economic Powers Act (IEEPA) in terms of its legal pathway and nature.
The core impact is that two major types of commercial permanent magnets—samarium cobalt (HTS 8505.11) and neodymium iron boron (HTS 8505.19)—which had enjoyed an exemption for years, will now be subject to an additional 25% tariff starting January 1, 2026. This duty will be applied on top of all standard duty rates and any Executive Tariffs in effect at that time, materially changing the landed cost of nearly every commercial magnet imported from China.
Compared to Executive Tariffs, Section 301 tariffs are more stable and enduring. They do not expire with a change in administration and require Congressional action to repeal, making them a more permanent and difficult-to-reverse trade measure. Analysis suggests this change may still be flying under the radar for many OEMs, engineers, and supply-chain teams, but its impact on global magnet procurement strategies and cost structures will be substantial.
Concurrently, demand for NdFeB magnets remains robust. Driven by sectors such as electric vehicles and wind power aimed towards energy transition, demand for neodymium magnets has risen sharply. Market data shows that as of January 2026, the price for NdFeB magnet blank material remains active, with an index around 241.65 on January 22, for example.
From a broader perspective, the global magnetic materials market outlook is promising. Industry research reports project the global magnetic materials market size, estimated at USD 33.78 billion in 2024, to reach USD 48.17 billion by 2030, growing at a CAGR of 6.3% from 2025 to 2030. The growth is predominantly driven by the automotive sector, particularly the surge in electric vehicle production and adoption. Permanent magnets like NdFeB are essential components in EV motors, sensors, and actuators. The global magnet materials market is expected to continue its rapid growth trend through 2033.
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