Tensions soar between the United States and China as Beijing imposes sweeping export controls on rare earth elements, vital for high-tech manufacturing and defense technologies, sparking international concern over supply chain vulnerabilities.
U.S. Treasury Secretary Scott Bessent labels China's actions a "supply chain power grab," vowing the U.S. will retaliate with threats of a 100% tariff on Chinese imports to protect national interests.
The Trump administration explores bold strategies, including setting price floors and potentially taking strategic stakes in rare earth companies to mitigate dependence on Chinese resources.
Allies like Australia and New Zealand engage in urgent discussions to strengthen partnerships and secure alternative supplies of rare earths, anticipating the profound impact of the trade dispute on global markets.
Analysts warn that the deepening trade war could inflict severe damage on the global economy, especially within sectors reliant on these crucial materials, heightening the stakes for both superpowers.
Amidst this escalating conflict, the U.S. and its allies push for a coordinated response to China's moves, as the geopolitical battle over rare earths transforms into a defining moment for international trade and security.
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