China has announced new restrictions on rare earth mineral exports, sparking a stern response from President Donald Trump.
The move gives China’s leaders ultimate power to decide who can access certain minerals needed for manufacturing anything from smartphones and electric vehicles to American fighter jets.
The restrictions from China will allegedly require any company exporting products that contain trace amounts of 12 rare earth elements to first get Beijing’s approval — an expansion from the initial seven minerals announced in April.
Since China controls roughly 70% of the world’s production and nearly 90% of processing capacity, per Forbes, the policy could effectively give the Chinese government veto power over global trade in advanced technology.
Trump quickly responded, announcing a tariff of 100% on all Chinese imports beginning November 1 – a sharp hike from prior tariffs.
Trump posted to Truth Social his position:
“It has just been learned that China has taken an extraordinarily aggressive position on Trade in sending an extremely hostile letter to the World, stating that they were going to, effective November 1st, 2025, impose large scale Export Controls on virtually every product they make, and some not even made by them. This affects ALL Countries, without exception, and was obviously a plan devised by them years ago. It is absolutely unheard of in International Trade, and a moral disgrace in dealing with other Nations.
Based on the fact that China has taken this unprecedented position, and speaking only for the U.S.A., and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying. Also on November 1st, we will impose Export Controls on any and all critical software.
It is impossible to believe that China would have taken such an action, but they have, and the rest is History. Thank you for your attention to this matter!
DONALD J. TRUMP
PRESIDENT OF THE UNITED STATES OF AMERICA”
The announcement rattled Wall Street, with the Dow dropping 878 points and the Nasdaq down 820 as investors braced for a new trade fight, per Investopedia.
The rare earth mineral dispute carries some deep national security implications. These minerals are essential for manufacturing military hardware, from radar systems to guided missiles.
In response, America has made efforts to expedite some domestic production efforts that were previously initiated.
The Defense Department signed a $35 million deal with MP Materials in 2022, America’s largest rare earth miner, to expand output and secure a long-term supply chain – building on earlier efforts to establish a ‘mine-to-magnet’ supply chain.
Additionally, JPMorgan Chase pledged up to $10 billion in private-sector investments in critical minerals. Shares in U.S. rare earth companies jumped more than 20% earlier this month amid expectations of additional federal support.
Still, rebuilding a full U.S. supply chain will take years and potentially cost billions.
For Texas manufacturers – from semiconductor hubs in Austin to defense contractors in Fort Worth – the future fight over China’s rare earth minerals could carry some heavy financial implications.