On May 14th, 2024, the White House announced a range of new tariffs on goods of Chinese origin. After review by the U.S. Trade Representative, these were finalized on Sept 13, 2024. These included a new tariff of 25% on all permanent magnets imported from China. This includes all rare earth magnets.
Most rare earth magnets sold in the U.S. are made in China.
One crucial reason is China’s vast reserves of the raw materials used to make rare earth magnets. China has the largest reserves of rare earth minerals of any country in the world. China also produces more rare earths per year than any other country. China outproduces the second largest producer, the U.S., by a factor of over 5 to 1.
This new magnet tariff will go into effect on January 1, 2026.
Additionally, the incoming Trump administration could apply additional tariffs as early as January 20th, 2025. These would be in addition to the previously announced 25% tariff referenced above.
What does this mean for U.S. buyers?
At some point after 1/1/2026 – and possibly much sooner - magnets from Apex Magnets and other U.S. magnet vendors' prices will increase. Importers will eventually have no choice but to pass along the increased cost of sourcing magnets to end users.
What can I do to lessen the impact of tariffs on permanent magnets on me or my business?
- If you are considering purchasing magnets, purchase before January 1, 2026 at the latest. The sooner, the safer.
- If you or your business use or purchase magnets on a regular basis, strongly consider stocking up now to lock-in prices at current rates.
What is Apex Magnets specifically doing/recommending to help our valued customers and potential magnet buyers?
- We are stocking up now on our most popular magnet specifications and will make every effort to hold pricing as long it makes economic sense to do so.
- If you are considering or need a custom size, we highly recommend you call or submit a Custom Magnet Quotation request as soon as possible, so we can have the magnets produced and you or your business have sufficient time for your in-house testing or quantity purchase production.
- We are ready to help you create blanket Purchase Orders that can lock-in prices and maintain supply chain price stability for as long as possible.
- We are here to assist you in making smart purchasing decisions. Contact us through our website “Contact Us” page or call us at 1-304-257-1193.