China’s rare earths squeeze leaves US dangerously exposed

The recent intensification of US-China trade frictions, marked by China’s expanded export controls on rare earth elements (REEs) announced on October 9, 2025, and President Donald Trump’s subsequent 100% tariff threat on October 10, underscores the deepening mistrust between the world’s two largest economies.

China, which controls 85-90% of global rare earth processing capacity, introduced the measures through a series of Ministry of Commerce notices affecting rare earths, processing technologies, batteries, and superhard materials, with most taking effect on November 8.

In response, Trump threatened an additional 100% tariff on top of a previous 30% levy imposed on all Chinese imports starting November 1, while casting doubt on the planned Trump-Xi meeting at the APEC summit on October 31.

Read more