Yttrium shortage fuels new trade tension between the United States and China

Yttrium, a little-known rare earth element essential for high-tech applications, has become a focal point of U.S.-China trade talks after China stopped shipping the metal to the United States in mid-2025. The United States, which relies heavily on Chinese sources, now faces potential disruptions to its semiconductor, laser and aerospace sectors. Beijing previously used yttrium as leverage against Japan when the Japanese prime minister condemned Chinese actions toward Taiwan, cutting off supplies in November.

The metal’s scarcity is further highlighted by China’s broader export controls on six rare metals introduced in April 2025. The dispute is slated for discussion at the September summit between Xi Jinping and Donald Trump in Washington, while European trade officials have urged China to address the shortage.