International: China Hits the U.S. Hard in Escalating Trade War
Export Ban on Rare Earths Alarms Washington
Tensions between the United States and China have intensified yet again, this time with Beijing suspending the export of critical minerals. China has officially announced a halt to the export of Rare Earth Minerals, Critical Metals, and Industrial Magnets, triggering a wave of concern in Washington.
Beijing Strikes Back at Tariff Hikes
In a tit-for-tat response, China’s latest move follows U.S. President Donald Trump’s recent decision to raise tariffs on Chinese goods by up to 145%. Beijing, in retaliation, increased its tariffs on American products to 125%. The suspension of rare mineral exports marks a critical development in the ongoing trade war. What’s more alarming is the fact that nearly 90 percent of the rare earth minerals produced worldwide come from China.
Western Industries to Bear the Brunt
Rare earth minerals are essential components in a wide range of industries, including defense, electronics, automotive, aerospace, and semiconductors. Industry analysts warn that major U.S. companies like Lockheed Martin, Tesla, and Apple, which rely heavily on Chinese raw materials, are likely to be adversely impacted.
Though the U.S. government has some strategic reserves of rare earth minerals, experts believe that these are insufficient to meet the ongoing requirements of defense contractors and industrial manufacturers.
Possibility of Talks Again on Board
White House economic advisers acknowledge that China’s decision could be a short-term disruption with long-term consequences. However, U.S. Treasury Secretary Scott Besant indicated that there may still be room for negotiation, particularly on the tariff front.
Meanwhile, trade experts caution that China might further tighten its grip by limiting export licenses for critical minerals, a move that could escalate the situation further and affect global supply chains.