Trump’s 200% rare earth tariff threat proof of China’s leverage: analysts
A warning of higher tariffs over China’s supply of permanent magnets only shows Beijing it must protect its near-monopoly status, experts said
Revived threats of tariff increases from US President Donald Trump over China’s supply of rare earth elements highlight the minerals’ importance in global manufacturing, analysts said – and show Beijing its dominance in this area remains a potent source of leverage in trade negotiations.
He described tariffs as “incredible cards”, saying they would “destroy China” if played.
“The comments would seem to confirm that rare earths are indeed a key pain point for the US in trade relations,” said Lynn Song, chief economist for Greater China at ING.
“It appears to be more of an off-the-cuff warning in case trade talks break down and these shipments are halted again.”