Integrated Magnetics & Tariff Update

Tariffs & Product Availability in 2025

To Our Valued Customers:

Last updated: April 10, 2025

Background

China accounts for about 70% of Rare Earth production and about 90% of Rare Earth processing. Modern magnet materials such as Neodymium Iron Boron (often referred to as “Neo”, “Neodymium” or “NIB”) and Samarium Cobalt (“SmCo”) are highly dependent upon China for the ores, processing and for finished magnets and magnet assemblies.

Impact on Pricing

Most of the Rare Earth magnets we use for magnetic assemblies we manufacture are sourced from Japan or Germany, with a smaller portion sourced from China. All imports are currently subject to import tariffs of varying levels, depending on where they come from. In addition, there are special tariffs on imported steel and aluminum (both of which we use as components of products that we produce).

This is a rapidly changing situation, and we must calculate the impact of these tariffs on a case-by-case basis. For maximum transparency we plan to quote and add tariffs as a separate line item – and if the rate changes, we will adjust them accordingly.

Impact on Availability

Presently, our non-China based suppliers of magnetic materials have no restrictions on the supply of Rare Earth Magnets to us. The Government of China has announced that all Rare Earth materials (including Rare Earth magnets) are now subject to additional restrictions and export controls, which will most likely delay the delivery of inventory, and may cause temporary out-of-stock conditions for some items.

Here are a few links to recent updates:

• https://www.reuters.com/world/china-hits-back-us-tariffs-with-rare-earth-export-controls-2025-04-04/
• https://www.reuters.com/world/china-impose-tariffs-34-all-us-goods-april-10-2025-04-04/
• https://oilprice.com/Energy/Energy-General/China-Restricts-Rare-Earths-Exports-Again.html
• Trump Tariffs: China's Rare Earth Moves Threaten US Defense | China-US Trade War | World News

Our Commitment to You

We will continue to leverage the excellent relationships we have developed over more than 50 years with our non-China based suppliers as well as our 25+ year relationships with our qualified China supplier base to try to ensure availability and cost mitigation so that your business is impacted as little as possible. We will continue to keep you updated as the situation evolves.

Thank you for your understanding!