China plays a pivotal role in the world’s supply chains, and that’s especially true for minor metals such as antimony, lithium, manganese, bismuth, and cobalt. These resources are critical to industrial and technology development and are common materials in electronics, metal alloys, and renewable energy products.

Tariffs levied on certain goods or raw materials from specific locations disrupt global trade flows, which can lead to price volatility. In the case of minor metals, that creates challenges for industries dependent on Chinese exports.

China’s Dominance in the Minor Metals Market

According to data from the Brookings Institute, China dominated the rare earth metals market in 2022, including minor metals. It operated 60% of the global production of these metals and 85% of processing capacity. Another study noted that China processes 89% of some rare earth metals; it also extracts 79% of the world’s manganese. Chances are in early 2025, if a product or process requires minor metals, those resources are connected to China.

Reasons for this dominance include geographic reserves of metals, cost-effective labor to mine and process metals, and government-backed industrial processes that ensure the ready availability of these resources. Globally, many businesses and nations rely on a stable minor metal supply from China to support:

• Antimony, which is a critical element used in flame retardant products and semiconductor applications. China is the world’s largest producer, with its low-cost extraction and refining processes making it a reliable supplier. Industries reliant on antimony for electronics and industrial applications face challenges due to tariff-induced price fluctuations.
• Manganese that is vital for steel production and energy storage technologies, including batteries for renewable energy systems. China dominates global manganese processing, refining nearly 90% of the world’s supply. Its cost-effective processing capabilities make manganese indispensable to international supply chains, but tariffs could significantly disrupt industries like construction and energy.
• Bismuth, prized for its non-toxic properties and use in pharmaceuticals and cosmetics, as well as in specialty alloys. China’s dominance in bismuth mining and processing allows it to control the supply for these niche but growing markets. Tariffs on bismuth exports could raise prices, impacting small but critical applications.
• Lithium, a cornerstone of renewable energy storage and electric vehicle (EV) batteries, is another area of Chinese market strength. While countries like Australia and Chile lead in raw lithium extraction, China’s advanced processing infrastructure gives it a commanding position in the supply chain. Any disruptions caused by tariffs could ripple through the global EV and battery storage industries.
• Cobalt, used extensively in high-performance alloys and EV batteries, is also heavily processed in China, even though much of its raw extraction occurs in the Democratic Republic of Congo. China’s expertise in refining cobalt into usable forms ensures it remains central to industries like aerospace, automotive, and electronics.

The Consequences of Tariffs on Minor Metals

An increasing trend of US tariffs on Chinese exports over the past decade has created economic consequences on the minor metal market — and will likely continue to do so given plans for maintaining or increasing tariffs vocalized by key political leaders. According to data from the Tax Foundation, Trump-Biden tariffs from the past two administrations have resulted in $79 billion in tariffs and a reduction in Gross Domestic Product of 0.2%.

The so-called Tariff War hits Chinese exports particularly hard. The impact is especially heavy in minor metals, as the majority of those resources globally are affected by tariffs.

Some consequences of tariffs on industries reliant on minor metals include:

• Price surges caused by increased taxation on minor metals — regardless of supply, demand, and other economic forces, tariffs make these resources more expensive
• Increased lead times as businesses, governments, and others seek to negotiate around or implement tariffs
• More research and development spending as organizations seek alternative sources for minor metals that don’t come with the tariff burden

While tariffs might have some positive impacts, especially in motivating manufacturers and others to work on recycling efforts and more sustainable use of minor metals, the larger impact includes cost increases felt by everyone in the supply chain, from raw materials providers to consumers.

Tariffs and the Future of Minor Metals Sourcing

China’s dominance in minor metals presents an ongoing global challenge to the market. Tariff policies add to those challenges by increasing prices, though they also contribute to pressure that can reshape trade dynamics and supply trade diversification.

Industries that rely on minor metals must monitor market trends and invest in alternative solutions early to avoid serious disruption. Belmont Metals offers high-quality minor metals. Connect with our team for expert guidance today.