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Trump Threatens 100% Levy as US-China Trade Tensions Flare
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Washington D.C. – A renewed trade conflict between the United States and China is escalating, triggered by disputes over rare-earth minerals. Former President Donald Trump has threatened to impose an additional 100% levy on a range of Chinese goods, signaling a significant hardening of stance towards Beijing. This growth, reported on October 11, 2025, marks a sharp turn after a period of relative calm in US-China trade relations.
The dispute centers around China’s dominance in the production of rare-earth minerals, which are crucial components in a wide array of modern technologies, including electric vehicles, smartphones, and military equipment. The U.S. currently relies heavily on China for these materials, creating a strategic vulnerability. we cannot allow China to control the supply of these vital minerals,
stated a source close to Trump, reflecting the core concern driving the proposed tariffs.
Background: Rare earths and Strategic Importance
Rare-earth minerals aren’t actually rare in the earth’s crust, but they are difficult and costly to mine and process. China has strategically invested in this sector, controlling a significant portion of the global supply chain.This control allows China to exert economic leverage and potentially disrupt the production of key technologies in other countries.
Did You Know?
China accounts for approximately 70% of global rare earth element production.
Timeline of Escalating Tensions
| Date | Event |
|---|---|
| 2023 | US imposes initial restrictions on rare earth exports to China. |
| Early 2025 | China responds with export controls on certain rare earth minerals. |
| Oct 11, 2025 | Trump announces threat of 100% levy on Chinese goods. |
Potential Impacts of the New Levy
the proposed 100% levy could have far-reaching consequences for both economies. For the U.S., it could lead to increased costs for manufacturers and consumers, potentially fueling inflation. For China,it could disrupt exports and further strain its economic growth. Experts predict a significant impact on the electric vehicle industry,which is heavily reliant on rare-earth magnets.
Pro Tip:
diversifying the supply chain for rare earth minerals is crucial for mitigating risk.
Council on Foreign Relations - “The control of rare earth minerals is becoming a central point of contention in the US-China strategic competition.”
The Biden governance has been working to diversify the supply chain of rare-earth minerals, investing in domestic mining projects and seeking partnerships with other countries. however, these efforts are still in their early stages and are unlikely to fully offset the reliance on China in the short term. The situation is further complicated by geopolitical factors, including tensions over Taiwan and the South China Sea.
The Role of Geopolitics
The trade dispute over rare-earth minerals is not occurring in a vacuum. It is intertwined with broader geopolitical tensions between the U.S. and China. The U.S. views China’s growing economic and military power as a challenge to its global leadership, while china seeks to assert its influence on the world stage. This competition is playing out in various arenas, including trade, technology, and security.
US-China Trade Relations: A History of Conflict
The US-China trade relationship has been marked by periods of cooperation and conflict. The two countries have engaged in numerous trade disputes over the years, often centered around issues such as intellectual property theft, currency manipulation, and trade imbalances. The Trump administration initiated a major trade war with China in 2018, imposing tariffs on billions of dollars worth of goods. While a phase one trade deal was signed in 2020, many of the underlying issues remain unresolved.
