Beijing strikes back as bismuth prices skyrocket after Trump’s trade tariffs

Bismuth was among five materials added to China’s controlled export list after Trump introduced an initial 10% import tariff on Chinese goods. In February, China’s bismuth exports dropped sharply, tightening the global market and causing prices to rise nearly sixfold.

China dominates the production of numerous strategic materials caught in the growing geopolitical rivalry between Washington and Beijing, Bloomberg noted. On March 20, Trump invoked emergency powers to encourage increased extraction of critical minerals in the US, expanding on steps taken by his predecessor Joe Biden.

“The rapid surge in bismuth prices over the past seven weeks highlights Beijing’s ability to influence the flow of materials considered crucial to national security,” Bloomberg reported. “According to the US Geological Survey, China produces about 80% of the world’s refined bismuth, while the US has not produced it since 2013. The US sources about two-thirds of its bismuth from Asia.”

China’s bismuth exports in February fell to 458 tons, less than half the average monthly volume recorded last year, according to data from the country’s customs administration.

Meanwhile, global base prices rose from $6 per pound before Beijing’s actions on Feb. 4 to nearly $35 this week.

“Bismuth is used in everything from automotive coatings to pharmaceuticals and low-temperature alloys,” the publication noted. “It was added to China’s expanded list of materials requiring stricter export licensing, which also includes tungsten, molybdenum, indium, and tellurium.”

The only significant domestic source of bismuth in the US is recycled alloys, which accounted for 3% to 10% of supply over the past five years, according to the US Geological Survey. While bismuth can be found in some lead ores, the last primary lead smelter in the US closed over a decade ago.

As previously reported, Russia is exploring rare-earth metal projects with American companies. Russian dictator Vladimir Putin has said Russia is prepared to offer the US rare-earth metals from occupied territories in Ukraine.