The price of the rare earth element Yttrium has jumped through the roof, with a kilogram of the material currently sitting at $126 per kilogram. According to Bloomberg, this resource cost less than $8 at the end of 2024, meaning its price has increased by nearly 1, 500% in the past 12 months. This is an all-time high for Yttrium, with the trade war between the U.S. and China fueling the price hikes. This material is crucial for semiconductor manufacturing, where it’s used in various processes, including thin-film deposition and wafer polishing.
While there has already been some brewing rivalry between Washington, D.C., and Beijing, it came to a head in April when U.S. President Donald Trump imposed tariffs on all of the U.S.’s trading partners. This has led to an escalation between the East and the West, culminating in a 145% tariff on Chinese goods entering the United States and a reciprocal 125% import levy for American products landing on China’s shores.
