The ongoing trade war between the United States and China has escalated to new heights as Beijing has responded to President Trump’s tariffs by imposing reciprocal tariffs of its own on US goods. In a bold move, China has also taken the additional step of halting the export of rare earth minerals – materials that are crucial for many high-tech industries in the US.
Rare earth minerals are essential for the production of a wide range of technological devices, from smartphones to electric vehicles. China currently dominates the global rare earth market, supplying over 80% of the world’s demand. By cutting off the supply of these valuable minerals, China is significantly impacting US industries that rely on them for production.
The question now is how much pressure China can exert on the US to lift its tariffs. With the US heavily reliant on Chinese rare earth minerals, Beijing may have significant leverage in negotiations. However, the move also risks prompting the US to seek alternative sources or develop domestic production capabilities to reduce dependence on China.
As tensions continue to rise between the world’s two largest economies, the impact of China’s rare earth export ban on US industries will be closely monitored. The outcome of this latest development in the trade war remains uncertain, but one thing is clear – the stakes are high for both countries.
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Video “How much pressure can China put on the US to lift its tariffs? | DW News” was uploaded on 04/09/2025 to Youtube Channel DW News