Chinese exports of yttrium oxide to the United States reached 29 metric tons in July 2026, the second-largest monthly shipment since export controls were imposed in April 2025. Permanent magnet exports to the U.S. hit 647 tons that month, also the second-highest monthly volume in the post-controls era. Rare-earth magnet shipments to Japan fell 52.2% year-on-year to 111 tons, the steepest decline in 13 months. Yttrium oxide is essential for thermal barrier coatings on jet engine turbine blades, the thin layers that allow metal to survive temperatures that would otherwise destroy it. China dominates global rare earth production and has used export controls as a diplomatic lever, with the July increases timed as a negotiating gesture ahead of trade talks with the United States. The pattern follows precedent from Beijing’s 2010 restrictions targeting Japan. U.S. aerospace and defense companies gain some relief to stabilize production and costs, while Australia’s Lynas Rare Earths and Canada’s Neo Performance Materials work to build non-Chinese supply chains. Japan remains heavily exposed, with its automotive and electronics sectors facing persistent shortages and higher prices.