January 24, 2025 – New tariffs proposed by the Trump administration against China, Mexico, and Canada have the potential to upset the U.S. magnet market.
To curb both the flow of illegal immigrants and deadly fentanyl into the United States, President Trump on Tuesday further discussed tariffs on goods imported from all three countries. In addition to pressuring Mexico to address illegal border crossings, the tariffs are intended to address Mexico and Canada’s claimed receipt of chemical fentanyl components from China that are then trafficked into the United States.
The administration suggested a 10% tariff on goods imported from China and a 25% tariff on both Mexican and Canadian imports. The President has set a deadline of February 1 for related Executive Orders.
Both Mexico and China initially responded to the proposed tariffs with threats of retaliatory tariffs of their own. China has since revised its position, stating that cooperation regarding the flow of narcotics and trade cooperation between the U.S. and China is mutually beneficial. The U.S. is China’s largest trading partner; exports to the U.S. grew nearly 5% last year.
These proposed tariffs will be in addition to a 25% tariff on all permanent magnets imported from China that was announced last May and is set to take effect in January 2026. This would include rare earth magnets imported from China. The country holds the largest reserve in the world of rare earth magnets and outpaces the second largest producer of rare earth magnets – the U.S. – by 5x.
Although some exemptions may be included, Adams is reacting proactively to these proposed tariffs, including purchasing excess inventory of our most popular specifications, and we suggest our customers consider stocking up on their end as well.
Learn more about the newest tariffs, here: https://www.reuters.com/world/trump-says-he-is-discussing-10-tariff-china-feb-1-2025-01-21/