US-China Rare Earth Clash Intensifies
Rare earth minerals are used in a wide range of products, from fighter jets and submarines to cell phones and electric cars, making demand for them high.
China's recent announcement to impose severe restrictions on its rare earth minerals, starting December 1, has caused concern. The restrictions include not allowing the minerals to be used by foreign militaries. Currently, the US gets about 70% of its rare earth minerals from China.
“This is China versus the rest of the world. They have pointed a bazooka at the supply chains and the industrial base of the entire free world and we’re not gonna have it.” - Treasury Secretary Scott Bessent
In response to China's announcement, President Donald Trump has threatened to add a 100% tariff on China starting November 1.
Author's summary: Trump considers 100% tariff on China.