US considers tariff probe for rare earth magnets

The US Department of Commerce will evaluate whether to launch a section 232 investigation into imports of neodymium magnets as part of the outcome of a supply chain review ordered by the Biden administration in February.

High performance neodymium iron boron magnets are used widely in electronics, automotive, industry and defence applications and are critical components for the engines of electric vehicles and in offshore wind turbines.

China manufactures around 80pc of the world's neodymium magnets, with most of the remainder made by Japan. Section 232 of the Trade Expansion Act allows the president to impose tariffs based on a recommendation from the US secretary of commerce.

By Caroline Messecar