China restricts 7 more rare earths, something I have warned about many times.
China Retaliates Against Trump Tariffs
Bloomberg reports China Hits Back at Trump With Tariffs, Limits on Key Exports
President Xi Jinping’s government will impose a 34% tariff on all imports from the US starting April 10, matching the level of Trump’s so-called reciprocal tariffs on Chinese products. Authorities in Beijing also announced other measures including:
- Immediately restrict exports of seven types of rare earths
- Launch anti-dumping probe into medical CT X-ray tubes from the US and India
- Halt imports of poultry products from two American companies
- Add 11 American defense companies to an unreliable entity list
- Impose export controls on 16 US firms
- Halt imports of sorghum from a US company
- Investigate DuPont China for suspected antitrust violations
“The speed in which the counter measures were rolled out shows a high level of deliberation and a suite of appropriate responses to hit back at the US,” said Dylan Loh, assistant professor at the Nanyang Technological University in Singapore. “It strikes the balance between inflicting some pain but not being seen as a overreaction.”
China Panics
Trump says China Panicked
CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!
Actually, Trump will be the one to panic if China halts all rare earth exports, not just to the US.
Great Time to Get Rich
TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE. THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!
The market is excited by the prospects “MY POLICIES WILL NEVER CHANGE.”
The greatest tariff experiment since the Great Depression is underway.
Working Already
I am also pleased to report tariffs are already working.
GREAT JOB NUMBERS, FAR BETTER THAN EXPECTED. IT’S ALREADY WORKING. HANG TOUGH, WE CAN’T LOSE!!!
Trump on Thursday reiterated his willingness to offer tariff relief if China approves the sale of TikTok’s US operations. By taking action now, Beijing may be trying to strengthen its position in any future negotiations.
Question of the Day
Q: Why should anyone believe Trump?
A: There is no reason for China or any other country to believe Trump will honor any deal he makes.
Trump unilaterally, without any cause, based on a pack of lies and idiotic calculations broke he own USMCA deal with Canada and Mexico.
Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
Please read my March 9 post Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
Trump is complaining about Canada’s cheese tariffs. In 2018, he was bragging about cheese.
I list over a dozen direct Trump quotes on the deal. Please read the above post before quoting idiotic statements by Trump.
People keep making excuses for idiotic policy and distorted calculations.
Flashback October 1, 2018
Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world. The USMCA is a historic transaction!
Does anyone have any questions regarding the greatness, importance, and historic nature of USMCA to farmers and manufacturers?
It was such a great deal that Trump thanked Mexico and Canada. Notably USMCA is “Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!”
It “greatly opened markets to our farmers” and it even paid for the wall! And it will bring three great nations together!
Mercy! Who could possibly see things any differently?
Bear in mind, Trump negotiated USMCA. If there are any deficiencies in the treaty there is only one person to blame.
USMCA Expires June 2025
Bear in mind the treaty is up for renegotiation in June of 2025.
USMCA was ratified by the Senate 89-10. On the basis of national security lies Trump broke his own “greatest trade deal in history”
Q&A on the Greatness of USMCA
Q: Is 250 percent on cheese fair?
A: It’s not 250 percent. It’s tiered, and embedded into USMCA.
Q: Who signed USMCA?
A: Trump
Q: Who is responsible for this arrangement?
A: Trump
Q: Didn’t Trump brag that USMCA was the best trade deal in history?
A: Yes
Q: Is Trump a good deal maker?
A: Apparently not, by his own admission
Q: Will Trump honor the USMCA deal ratified 89-10 by the Senate and signed by himself?
A: No
Q: Will Trump honor any deal he signs?
A: You tell me, but no one can expect that
Q: Is there a massive lost in trust that Trump will honor any deals he signs
A: Yes
Trump may not honor any deal he signs. That is the bottom line.
No Nation Should Trust Trump
Trump may not honor any deal he signs. That is the bottom line, like it or not.
There is a cost to that. Why give concessions to trump when he may not hold up his end of the bargain, even on signed deals?
Defense spending, drugs and other Trumpian lies and distortions have nothing to do with the established facts. From the realistic viewpoint of allies, Trump broke his own treaty and is likely to do so again.
Spare me the sap about national emergency lies. There is no national emergency on energy, steel, or cheese.
If Trump wanted defense spending or drugs to be in USMCA, then he should have put them into USMCA. Since USMCA expires in June of 2026, Trump did not have to wait long to modify the treaty.
The ultimate irony is all the bragging Trump did about how great the USMCA deal was.
Understanding Rare Earths
At present China produces 60 percent of the world’s rare earths but processes nearly 90 percent, which means that it is importing rare earths from other countries and processing them. This has given China a near monopoly.
According to the United States Geological Survey, China has been supplying 54 percent of the germanium used by the United States, a material used in infrared technology and fiber optics.
The United States has not mined its own gallium, used in semiconductors, since 1987. Japan supplies 26 percent of American imports of gallium, China 21 percent and Germany 19 percent, along with several smaller suppliers.
Antimony (Sb), a critical metalloid, is a key element of the American war machine, essential for communication equipment, night vision goggles, explosives, ammunition, nuclear weapons, submarines, warships, optics, laser sighting and more, according to U.S. Army Major General (retired) James Marks.
China controls nearly 50% of the global antimony supply.
Related Posts
November 21, 2024: China’s Puts Export Curbs on Minerals US Needs for Weapons and Technology
In a warning shot to the Trump administration, China tightens export controls on some dual-use minerals.
December 3, 2024: China Halts Rare Exports Used by US Technology Companies and the Military
This is China’s advance salvo at Trump tariffs. It comes one day after the Biden administration expanded curbs on the sale of advanced American technology to China.
Today China retaliated by Immediately restricting exports of seven types of rare earths.
China can easily block rare earth exports to the world. If that happens, Trump will panic.
We should not be in this position, but we are.
Finally, please note Five Republican Senators Break Ranks With Trump Over His Tariff Madness