U.S. President Joe Biden has decided not to restrict imports of neodymium magnets, which come mostly from China and are used in electric cars, wind turbines and a number of other technical and defense applications, the White House said.

The decision avoids a new trade war with Beijing, as well as Japan, the European Union and other countries that export magnets or hope to do so to meet expected demand growth in coming years. It should also allay the fears of U.S. automakers and other manufacturers who rely on imports of magnets to produce finished products, Politico writes.

Biden's decision is based on the results of a 270-day Department of Commerce investigation that found U.S. reliance on imports of powerful magnets poses a threat to U.S. national security and recommended a series of steps to increase domestic production.

Rare-earth element magnets are also used in military fighter jets and missile guidance systems, in addition to other commercial applications such as computer hard drives, smartphones and MRI machines.

The Commerce Department, in a report, did not recommend tariffs on magnet imports, as former President Donald Trump did on steel and aluminum in 2018, following a similar national security investigation.

More specifically, the Commerce Department report said that domestic sources could potentially meet up to 51 percent of total U.S. demand in just four years. Currently, the United States is almost one hundred percent dependent on imports to meet commercial and defense needs, the report said.