US EditionWhat Are Rare Earth Minerals, and Why Are They Central to Trump’s Trade War?
- On June 2, U.S. Deputy Treasury Secretary Michael Faulkender confirmed ongoing discussions as China maintained export controls on rare earth minerals vital to technology and defense.
- The dispute follows U.S. tariffs announced in April and an agreement in Geneva last month, with reports differing on whether China violated the trade truce by keeping export curbs.
- China dominates the rare earth metals sector, supplying nearly two-thirds of the world's mined output and handling over 90% of its processing, which gives it significant influence over industries reliant on these materials, such as smartphone manufacturing, military aircraft, and nuclear energy.
- Faulkender highlighted that China currently holds a stronger and more sustained position of influence compared to the U.S., while experts caution that developing alternative rare earth supplies to replace China’s could take several years and pose challenges to vital industries.
- This control risks undermining U.S. Tech and defense sectors, prompting initiatives like a 2027 U.S. Supply chain pledge and foreign partnerships, but tensions may still disrupt the fragile trade truce.
22 Articles
22 Articles
The trade war between the United States and China has a key sticking point: rare earth minerals.
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