Critical minerals · permanent magnets
Buying rare-earth permanent magnets from China
A sintered neodymium magnet from China pays about 27.1% in US duty; a samarium-cobalt or bonded magnet pays about 39.6%, because only one magnet line is exempt from the 2026 forced-labor tariff. Many of these magnets also need a Chinese export license, and from January 1, 2027 a US defense contractor may not deliver magnets whose rare earths were mined or separated in China. This page takes each rule in turn.
Classification
Permanent magnets of metal are HTS subheading 8505.11.00, normal (MFN) duty 2.1%, with five statistical lines in the current schedule (USITC HTS 2026 Revision 21):
| Line | Product |
|---|---|
| 8505.11.0010 | Alnico |
| 8505.11.0030 | Ceramic |
| 8505.11.0050 | Sintered samarium-cobalt |
| 8505.11.0070 | Sintered neodymium-iron-boron |
| 8505.11.0090 | Other |
Non-metal permanent magnets are 8505.19 (4.9%), electromagnetic couplings and brakes 8505.20 (3.1%), and parts and other articles 8505.90. Bonded neodymium magnets have no line of their own, so they most likely fall under "Other"; we found no CBP ruling confirming it.
The US duty stack
| Line | MFN | Section 301 | Forced-labor duty | Total |
|---|---|---|---|---|
| 8505.11.0070 sintered NdFeB | 2.1% | +25% | Exempt | 27.1% |
| 8505.11.0050 sintered SmCo, and .0010, .0030, .0090 | 2.1% | +25% | +12.5% | 39.6% |
| 8505.19 non-metal magnets | 4.9% | +25% (Lists 1 and 3) | +12.5% | 42.4% |
The totals are our sums. The Section 301 duty on 8505.11.00 is 25% from January 1, 2026, under heading 9903.91.06, set by the 2024 four-year review (89 FR 76581, which names "one subheading (8505.11.00)"). No 8505.11 line was on the original 2018–2019 lists, so this 25% is the only Section 301 layer on it. U.S. note 52(b) exempts only 8505.11.0070 from the 12.5% forced-labor tariff; saying "magnets are exempt" is wrong for samarium-cobalt and bonded magnets. No 8505 line is in a Section 232 note.
The January 2026 Section 232 proclamation on processed critical minerals (Proclamation 11001) names rare earth permanent magnets but directed negotiations, not a tariff. We found no follow-up action as of October 14, 2026.
China's export license
- In force since April 4, 2025: MOFCOM Announcement No. 18 of 2025 (official English text, "for reference only") controls samarium-cobalt permanent magnet material and neodymium-iron-boron magnet material containing terbium or dysprosium; its notes say these "include magnets or magnetic powders". The Chinese exporter applies for the license.
- Finished products are generally outside it. MOFCOM's export-control site has published two FAQs, both marked as reference only, in Chinese. The fourth says motors, speakers and earphones made by further processing of the magnets are not within the control scope (FAQ No. 4). The fifth, dated January 26, 2026, says rotor and stator assemblies, molded sensors and magnetic consumer goods generally fall outside Announcement No. 18 (FAQ No. 5).
- Suspended until November 10, 2026: Announcement No. 57 of 2025 adds five more rare earths; among them only holmium has a magnet-material entry. Announcement No. 61, also suspended, would reach magnets made outside China that contain Chinese rare earths. See China's export controls for both, and the announced extension.
US defense contracts: the January 1, 2027 change
10 U.S.C. 4872 already bars the Defense Department from buying samarium-cobalt and neodymium-iron-boron magnets "melted or produced" in a covered nation (China, Russia, Iran, North Korea). From January 1, 2027 a new subsection (a)(3) extends the bar to covered material "mined, refined, or separated" in a covered nation (10 U.S.C. 4872). The contract clause, DFARS 252.225-7052, already carries the same phase-in: from that date the contractor "shall not deliver" covered material "mined, refined, separated, melted, or produced in any covered country".
The exceptions are narrow:
- Commercial off-the-shelf items, except, from 2027, a COTS item that is 50% or more covered material by weight;
- electronic devices, unless the contract says otherwise;
- NdFeB magnets made from recycled material where milling and sintering take place in the United States;
- non-availability determinations and national-security waivers.
There is no value or percentage threshold below which a Chinese-origin magnet is allowed. A defense supplier whose magnets come from a non-Chinese magnet maker still has to know where the rare earths in them were mined and separated, and be able to show it.
Forced labor
Rare earths and magnets are not among the UFLPA's named high-priority sectors in DHS's 2025 strategy update, but the presumption applies to any good made wholly or partly in Xinjiang or by a listed entity. See the UFLPA for battery and mineral importers.
The DFARS date and the China suspension dates are on the trade-rule calendar.
Sources: USITC HTS 2026 Revision 21 (chapter 85; chapter 99 U.S. notes 20, 31 and 52); 89 FR 76581; Proclamation 11001 (91 FR 2439); MOFCOM Announcements No. 18, 57, 61 and 70 of 2025 and the export-control FAQs linked; 10 U.S.C. 4872; DFARS 252.225-7052. Last checked October 14, 2026. General information, not customs, export or contracting advice.
Last checked 2026-10-14