Official Chinese trade records indicate that the volume of high-strength magnets sent to American ports fell 13% compared to the same period last year. These shipments totaled 512 tonnes in August, a 20% decline from July, which constrained the flow of critical minerals needed for manufacturing.

The contraction precedes talks between President Donald Trump and President Xi Jinping to discuss the trade of these materials. Analyst Steve Hanke states that Beijing is leveraging export controls and slow license approvals to disrupt US supply chains.