On May 14, 2024, the White House announced a range of new tariffs on goods of Chinese origin. Following a review by the U.S. Trade Representative, these tariffs were finalized on September 13, 2024. Among them is a significant 25% tariff on all permanent magnets imported from China, including rare earth magnets. This new tariff is set to take effect on January 1, 2026.

Why Are Most Rare Earth Magnets Made in China?

China dominates the global rare earth magnet market for several reasons:

 

  • Vast Reserves: China holds the largest reserves of rare earth minerals of any country.
  • High Production Levels: China produces more rare earths annually than any other nation, outpacing the United States, the second-largest producer, by a factor of over five to one.

 

Given these advantages, most rare earth magnets sold in the United States originate from China.

What This Means for U.S. Buyers

Starting January 1, 2026 – and possibly sooner, depending on additional tariffs that the incoming Trump administration may implement as early as January 20, 2025 – U.S. buyers will see increased prices for magnets. Importers will need to pass these added costs along the supply chain, resulting in higher prices for end users.

How to Lessen the Impact of Tariffs on You or Your Business

Here are proactive steps you can take:

 

  1. Purchase Magnets Now: If you’re considering buying magnets, act before January 1, 2026. The sooner you secure your purchase, the more likely you are to avoid price increases.
  2. Stock Up for Regular Use: For businesses that regularly use magnets, stocking up now can lock in current pricing and mitigate future cost increases.

How Apex Magnets is Supporting Customers

At Apex Magnets, we’re committed to helping our customers navigate these changes. Here’s how we’re preparing:

 

  • Stocking Up: We are increasing our inventory of the most popular magnet specifications to maintain stable pricing for as long as possible.
  • Custom Orders: If you require custom sizes, submit a Custom Magnet Quotation request now. This will ensure we have adequate time for production and allow you to conduct any necessary in-house testing or bulk purchases.
  • Blanket Purchase Orders: We offer blanket Purchase Orders to lock in pricing and maintain supply chain stability.
  • Expert Guidance: Our team is ready to assist you in making smart purchasing decisions. Reach out to us via our Contact Us page or call us at 1-304-257-1193.

Prepare Now to Avoid Future Challenges

The upcoming tariffs on permanent magnets represent a significant shift for the industry. By acting early, you can minimize their impact on your business or personal needs. Apex Magnets is here to help you every step of the way.