Trump’s 145% Tariff Impact: China Bans Exporting Rare Earth Minerals

U.S. President Donald Trump has raised tariffs on Chinese goods to 145% which has resulted in stoppage of exports of rare earth minerals and magnets in China. The Chinese ports have been filled with halted shipments as Beijing works on new rules and regulations that could potentially block sales to certain American defense contractors.

This sudden decision has led to a devastating impact across industries like aerospace, defense and electronics. There has also been an impact in the automobile and robotics industry as they require magnets made with rare earth minerals. This also effects the production of drones and missiles.
Trump’s Tariffs which was declared in Early April was originally applied to over 200 countries and territories, however most were given a 90-day delay.  Unfortunately, China was not given this time leading to sparks. Starting at 20%, U.S. tariffs on Chinese goods were gradually increased to 145%. China responded by imposing 125% tariffs of its own.

The trade war between China and U.S might lead to industry altering deals, with various other nations involved.  U.S is expected to strike deals with Ukraine as negotiations are underway. Reports also say that Russia is set to play an important role by indulging in joint production in occupied parts of Ukraine. Some of Donald Trump's administration officials fear that the trade battle may soon turn into a national security emergency, which might lead to the Chinese advancing their plans for a military invasion of Taiwan.

Although they are scarce, rare earth metals are essential to modern technology. Global industries may soon experience delays, shortages, and increased costs as a result of China's export ban and growing trade tensions.