US Section 301 Tariffs Shake Global Magnet Supply Chain, Triggering Intensive Adjustments in Corporate Strategy And Market Dynamics
Views: 0 Author: Site Editor Publish Time: 2026-01-30 Origin: Site
Recently, the magnet industry is facing a profound and impactful global supply chain shift directly driven by trade policy. Effective January 1, 2026, the long-planned U.S. "Section 301" tariffs have been activated, imposing an additional 25% duty on commercial permanent magnets (including samarium cobalt and neodymium iron boron) imported from China. This policy change is significantly impacting the cost structure and procurement strategies of the global magnet industry.
Core Change: The U.S. Section 301 Tariffs and Their Ripple EffectsUnlike the widely discussed 2025 "Executive Tariffs," the Section 301 tariffs are based on the U.S. Trade Act of 1974 and are far more stable—they do not expire with a change in administration and require Congressional action for repeal. Previously, samarium cobalt (HTS 8505.11) and neodymium iron boron (HTS 8505.19) magnets enjoyed an exemption from these tariffs, but this exemption ended on New Year's Day 2026. This means that the landed cost of nearly every commercial magnet imported into the U.S. from China will now see a substantial increase due to this new 25% levy. For many downstream manufacturers and supply chain teams, this significant policy shift may still be flying under the radar, but its impact will be material.
Market and Industry Linkages: Price, Capacity, and New Entrants' MovesAgainst this backdrop of macro trade policy, intensive activity is also occurring at the micro level of the industry.
Product Pricing: Despite tariff pressure, demand for high-performance NdFeB in the Chinese market remains robust. Taking the high-performance NdFeB grade 38EH, used in areas like EV traction motors and industrial servo motors, as an example, its rough material market price in late January 2026 remained within a mid-to-high range of approximately 380 to 400 RMB per kilogram.
Corporate Strategic Transformation: Facing intensified industry competition and cost pressures, leading companies are proactively adjusting their capacity layouts. A representative case is Sinosteel Tianyuan, which announced on January 9, 2026, its decision to terminate two originally planned ferrite magnet fundraising projects and repurpose approximately 686 million RMB in raised funds. Of this, about 299 million RMB will be directed towards building a new project with an annual output of 3,000 tons of high-performance NdFeB magnets. The company stated that this move is to respond more quickly to the growing demand for high-performance rare earth permanent magnet materials from downstream emerging sectors such as smart homes, high-power permanent magnet motors, and the low-altitude economy. This also reflects a shift in market focus from some traditional, highly competitive ferrite magnet materials towards higher value-added and more promising growth areas like high-performance NdFeB.
Ambitions of New Players: Globally, efforts to reduce dependence on China's magnet supply chain are advancing on multiple fronts. India, in November 2025, approved a 73-billion-rupee (approximately $800 million) plan aimed at incentivizing domestic manufacturers to achieve an annual production target of 6,000 tons of permanent magnets within seven years to meet domestic demand expected to double in five years. This plan, along with similar initiatives in the EU, Australia, and elsewhere, constitutes another main thread in the reshaping of the global rare earth magnet industry landscape. However, experts also point out the complex challenges India faces, including a lack of industrial know-how and dependence on Chinese raw materials.
Industry Trends: Technological Innovation and Green TransformationAlongside policy and trade dynamics, the industry's own technological evolution continues to accelerate. The global magnetic materials industry is undergoing a "silent yet profound transformation" driven by new energy and smart equipment. On the technological front, the application of nanoscale grain boundary diffusion technology has significantly improved the coercivity and high-temperature performance of NdFeB magnets; meanwhile, exploring heavy-rare-earth-free magnets to reduce costs and developing biodegradable bonded magnets for environmental goals have become important innovation directions. The global industrial chain is also showing a pattern of differentiated competition, with China leveraging its complete industrial chain, Japan focusing on ultra-thin flexible technology, and Europe specializing in the research of recycled magnetic materials.
Flash News
-
US Section 301 Tariffs Shake Global Magnet Supply Chain, Triggering Intensive Adjustments in Corporate Strategy And Market DynamicsRecently, the magnet industry is facing a profound and impactful global supply chain shift directly driven by trade policy. Effective January 1, 2026, the long-planned U.S. "Section 301" tariffs have been activated, imposing an additional 25% duty on commercial permanent magnets (including samarium
-
Latest News: US, Japan, and EU Collaborate to Reshape Rare Earth Supply Chain Amid China's Dominance, Triggering New Industry VariablesRecently, the global supply chain competition surrounding the critical strategic material of rare earth magnets has intensified sharply. In January 2026, the United States, Japan, and the European Union are accelerating coordinated actions in an attempt to build a "de-sinicized" rare earth and magne
-
Latest Magnet Industry News: Global Major Economies Strengthen Rare Earth Magnet Supply Chain Strategies, Humanoid Robots Emerge as Key Demand EngineAccording to industry information as of early December 2025, the magnet industry is at the intersection of two core trends: on one hand, the restructuring of the global supply chain is accelerating, driven by policies in multiple countries; on the other hand, emerging applications represented by hum
-
EU Passes Critical Raw Materials Act Mandating Recycled Magnets in Wind Turbines And EVsEU Passes Critical Raw Materials Act Mandating Recycled Magnets in Wind Turbines and EVsOn October 7, 2024, the European Parliament approved amendments to the Critical Raw Materials Act (CRMA), requiring a minimum 25% recycled magnet content in EU wind turbines and electric vehicle motors by 2030. T
-
Latest Industry Trend: Rapid Growth in High-Performance Permanent Ferrite Magnet MarketAccording to industry news in December 2025, high-performance permanent ferrite magnets are experiencing strong demand in various fields including automotive, home appliances, and new energy, thanks to their advantages such as low cost, high-temperature resistance, and demagnetization resistance. Dr
-
Ministry of Commerce Clarifies Export Controls: Rare Earth Permanent Magnet Motor Components And Other Products Not Subject To RestrictionsChina's Ministry of Commerce (MOFCOM), on September 16, 2025, provided official clarifications regarding frequently asked questions on dual-use items related to rare earths. It explicitly stated that deeply processed products such as motor rotors and stator components are generally not subject to th
-
US Department of Energy Lnvests 38 Million To Commercialize Magnet Recycling Technologies∗InSeptember2024,theU.S.DepartmentofEnergy(DOE)launchedthe"Closed−LoopCriticalMaterialRecyclingProgram,"awarding38 million to six tech companies to develop breakthrough technologies for efficient extraction of NdFeB magnets from e-waste and motors. Notably, Noveon Magnetics' patented Hydrogen Proces
-
China's Rare Earth Export Controls Disrupt Global Supply Chain Magnet Raw Material Prices Remain VolatileExport Restrictions EscalateChina’s export permits for 7 heavy rare earths (e.g., samarium, gadolinium) since April 2025 tightened global supply, hitting automotive and electronics sectors.Only 25% of EU firms’ license applications approved, forcing partial production halts.Price TrendsDysprosium Ir
-
China's Rare Earth Magnet Exports To EU Surge As Europe Accelerates Local ProductionOn September 23, 2025, Chinese customs data revealed that exports of rare earth magnets to the EU surged to 2,582 tons in August, up 21% month-on-month—4.4 times the volume exported to the U.S. (590 tons), highlighting the EU’s deep reliance on Chinese supply chains1. Simultaneously, Europe is accel
-
China's Rare Earth Magnet Exports Drop 6.1% MoM in September, US Shipments Plunge Nearly 30%Export DynamicsSeptember Volume: 5,774 tons, down 6.1% month-on-month (from 6,146 tons in August), ending three consecutive months of growth, but still up 17.5% year-on-year.Jan-Sep Cumulative: 39,817 tons, a 7.5% decrease compared to 2024.Destination DivergenceUS: Shipments plummeted 28.7% MoM due
