American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

China tightens critical metals export curbs as Trump’s tariffs take effect

by admin February 4, 2025
February 4, 2025

In a move that escalates the ongoing trade war, China has revealed stringent export restrictions on five metals crucial to multiple sectors including defense, clean energy, and various other industries, according to Reuters. 

This announcement came mere minutes after US President Donald Trump’s additional 10% tariff on Chinese goods took effect, marking a swift and direct response from Beijing. 

The restrictions are expected to disrupt global supply chains and could potentially impact the production of key technologies in both China and the US. 

This could further complicate the already strained economic relationship between the two superpowers. 

The affected industries, particularly those reliant on these metals for advanced technologies and defense applications, are likely to face challenges in sourcing alternative supplies, potentially leading to increased costs and delays in production.

China’s dominant position in critical mineral space

China’s strategic utilization of its dominant position in the critical mineral supply chain as a geopolitical lever has been evident since 2023.

The recent imposition of export restrictions on gallium and germanium in December was another maneuver in this ongoing strategy. 

These minerals are indispensable components in a wide array of technologies, including but not limited to consumer electronics like smartphones, electric vehicle batteries, military applications such as infrared-guided missiles, and even conventional ammunition.

China’s near-monopoly on the mining and processing of these critical minerals grants it significant leverage in global trade and politics. 

By controlling the supply of these essential materials, China can exert pressure on other countries, potentially disrupting supply chains and hindering technological advancement in sectors it deems strategically important.

Bans on new metals

On Tuesday, the Chinese government introduced immediate restrictions on the trade of tungsten, tellurium, bismuth, indium, and molybdenum, as well as their related products. 

These metals have applications in a wide range of products, including solar panels and artillery shells, according to the Reuters report. 

Shortly after the US imposed additional tariffs on Chinese imports, the Chinese Commerce Ministry released a statement declaring that the controls were implemented to “safeguard national security interests.”

On January 16, it indicated that it would bolster export controls this year.

Although the controls do not include a complete ban, exports will probably decrease significantly because companies will need to rush to obtain export licenses, which takes approximately six weeks.

Although shipments may recover slowly as licenses are granted, this is expected based on the outcomes of previous export restrictions, according to the report.

Uncertainty for US

The US has relied on imports for tungsten since 2015 and bismuth since 1997, when domestic mining and refining operations ceased for each metal, respectively. 

It is currently uncertain if US importers will manage to obtain import licenses for these metals.

The cost of tungstate APT, a compound used to manufacture various tungsten products, reached its highest point since 2014 at the close of January, Reuters said.

An index tracking indium prices outside of China was near a ten-year high at the same time.

The post China tightens critical metals export curbs as Trump’s tariffs take effect appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
S&P/TSX Composite forecast as US and Canada trade war starts
next post
Long EPR: bullish breakout ahead as stock moves in ascending channel, eyeing $52-$54 resistance zone

Related Posts

President Trump threatens Canada with dairy, lumber tariffs

March 8, 2025

Italy grapples with its patriarchal history as femicide...

March 10, 2024

21 people die as school building collapses in Nigeria when students...

July 14, 2024

Devastation in Gaza as Israel wages war on...

March 11, 2024

Russia has recruited as many as 15,000 Nepalis...

February 13, 2024

Rescuers scramble to reach remote region of Papua...

May 25, 2024

Georgia passes controversial ‘foreign agents’ bill despite widespread...

May 15, 2024

Russian assault piles pressure on fragile Ukrainian defensive...

April 3, 2024

One of Saturn’s smallest moons has a secret...

February 8, 2024

South Africa has one of the world’s largest...

May 1, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,032)
    • Investing (2,462)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved