Trump threatens China with 100% more tariffs over rare earth curbs, Pg1.

Key Highlights:

• China expanded export controls on rare earths and critical minerals on October 9, 2025.
• President Trump threatened to raise duties on Chinese goods by 100% in response.
• The S&P 500 fell by 2.7%, the biggest single-day drop in six months.
• China's export control impacts products with over 0.1% China-origin rare earths.
• US-China trade tensions could trigger a price surge in the US.
• India's imports from China surpassed $100 billion in 2023-24.

Detailed Insights:

• China's export controls require approval for products containing more than 0.1% China-origin rare earths or made using Chinese technology.
• This impacts various sectors, including F-35 fighter jets, EV motors, and wind turbines, given China's control of 70% of global rare-earth refining capacity.
• The US may seek to diversify its mineral supply chains to countries like Australia, Vietnam, and Canada.
• Ajay Srivastava suggests that an escalating trade war could lead to inflation in the US, potentially undermining President Trump's economic agenda.
• India should focus on self-reliance in critical technologies and minerals, insulating its economy from trade shocks.
• MUFG Research suggests China's measures could be a negotiating strategy ahead of the APEC Summit.
• Rhodium Group highlights concerns about weak Chinese demand for imported goods and the growing gap between its manufacturing exports and imports.

Key Concepts Involved:

• Rare Earths: A set of seventeen metallic elements that are essential in many modern technologies.
• Export Controls: Government regulations that restrict the export of certain goods or technologies.
• Friend-shoring: The practice of sourcing inputs and manufacturing in countries that are allies.