President Trump is threatening new tariffs (at 100%), after China introduced new restrictions on exports of rare earths and related technology.
Analysts say the export controls were an attempt to boost China’s leverage in trade talks with the United States, but Trump now says he may call off a planned meeting with Chinese leader Xi Jinping later this month
European firms are expecting more shutdowns and suffering losses as China continues to hold a tight grip on rare earth exports despite a July agreement to fast-track shipments to the bloc, the European Union Chamber of Commerce in China said on Tuesday
Source: NPR: Read The Article
PSR Analysis. China processes about 90% of the world’s rare earths, which are critical inputs in everything from smartphones to advanced fighter jets. China has used its dominance in rare earths to apply pressure to the United States as trade friction intensified this year following Trump’s “liberation day” tariffs. PSR
Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research
