US Treasury Secretary: The U.S. Senate is about to authorize Trump to impose 500% tariffs on China. not only are tariffs imposed, but the U.S. Treasury Secretary also said: “If the U.S. postpones the rare earth restriction program, the U.S. can consider suspending the period of high tariffs on China.”
Recently, trade frictions between China and the United States have become a lot more lively, and the United States has taken frequent actions, especially around rare earths and tariffs. Speaking of this, we have to start with several announcements issued by China's Ministry of Commerce last week. On October 9, the General Administration of Customs of China issued six announcements to strengthen export management of rare earths related products, including requiring companies exporting rare earths to provide more approval materials. This is not the first time, but this time it is large in scale and wide in coverage, directly affecting the global supply chain. As everyone knows, China accounts for 70% of global production, and more than 90% of the processing links. Everything from electric vehicle batteries to military equipment in the United States cannot be separated from this thing. As a result, the United States immediately jumped, and Trump directly announced that starting from November 1, it would impose an additional 100% tariff on China goods and threatened to control the export of key software. The increase in this tariff is equivalent to pushing the Sino-US trade war to a new climax.
U.S. Treasury Secretary Scott Bessent has frequently appeared in the past few days, with the media face blunt. He was interviewed in Washington's Treasury Department building, saying that China's regulations are "the power of the global supply chain", and also criticized China's domination of rare-earth markets, pressing foreign competitors by low prices. Bessent was not a newman, he rose from Wall Street, hedge funds played around, before in Soros, and now in U.S. fiscal power. He stressed that the U.S. will not be "commanded or controlled", but also left behind a line: if China could delay these new rules for rare-earth exports, the U.S. could consider extending the current tariff suspension, not more than three months as short. Since the beginning
Look at what's happening in the Senate. On October 15, the U.S. Senate passed a bipartisan bill with 85 votes in favor, authorizing Trump to impose punitive tariffs of up to 500% on China companies that buy oil from Russia. This bill came quickly. It was originally aimed at the energy deal between Iran and Russia, but now it points directly at China on the grounds that China's purchase of Russian oil indirectly supported Moscow's military spending. When promoting the bill, Besent said that 85 senators had lined up in support, in order to keep allies, including India and others, to keep up with the pace and put pressure on China. He also mentioned that the United States is already imposing tariffs on India's purchase of Russian oil and is temporarily tolerating China, but it does not mean that it will not act. This 500% tariff sounds scary, but in actual operation it targets specific companies and does not cover them all, but the signal is clear: the United States wants to use economic leverage to choke on China to relax on energy and rare earths.
Why is the United States so anxious? To put it bluntly, the shortage of rare earths has hit their pain point. There is little rare earth mining in the United States and incomplete processing chains. The military-industrial complex cries about unstable supply chains every day. A report from the Ministry of Defense shows that magnet components in F-35 fighter jets and missile systems must be imported by China. Now that controls are tightened, yellow lights are on on the production line. Electric vehicles are even worse. Tesla and General Motors 'battery supply chains are directly stuck, and costs are rising. Besent said bluntly in an interview with CNBC that American car companies had called the White House to complain. This is not only an economic matter, but also involves military strength. Russia and China have given the United States headaches in military industry. Now that the limit on rare earths is equivalent to giving their opponents the opportunity to overtake in corners. Within the Trump administration, the military lobby group was under great pressure, forcing Besant and Trade Representative Greer to express their position, saying that China's move was "economic coercion" and that the world must be vigilant.
China has also responded to the hard-hearted. The spokesman of the Ministry of Commerce, Lin Zheng, said at a routine press conference that the US accusations were "deliberately making panic", and also approved Bessent's remarks on the Chinese negotiating representative, Li Zheng Steel, "seriously distorting the facts." Li Zheng Steel is the backbone of China's trade negotiations, and Bessent said he was "a little out of control" and "disrespectful", and even claimed that Chinese officials at the end of August threatened to "make chaos in the global system." In fact, China's rare-earth exports have not stopped completely, more censorship is aimed at preventing technology and illegal exports. The global market reacts? rare-earth
Against the background of the Sino-US game, we need to tell the truth. The United States wants to decouple, but it cannot do without manufacturing in China. From aircraft carrier parts to daily toys, American consumers have long been accustomed to low-priced goods. Now that tariffs are imposed, all inflationary pressure will be passed on to the people. I remember that in the wave of tariff wars in March, the United States lost nearly US$400 billion in one month. The data is traceable. This time too, Wall Street took a small dive, with the Dow falling 0.8%, but it quickly stabilized because the market bet on the continuation of negotiations.
Recently, trade frictions between China and the United States have become a lot more lively, and the United States has taken frequent actions, especially around rare earths and tariffs. Speaking of this, we have to start with several announcements issued by China's Ministry of Commerce last week. On October 9, the General Administration of Customs of China issued six announcements to strengthen export management of rare earths related products, including requiring companies exporting rare earths to provide more approval materials. This is not the first time, but this time it is large in scale and wide in coverage, directly affecting the global supply chain. As everyone knows, China accounts for 70% of global production, and more than 90% of the processing links. Everything from electric vehicle batteries to military equipment in the United States cannot be separated from this thing. As a result, the United States immediately jumped, and Trump directly announced that starting from November 1, it would impose an additional 100% tariff on China goods and threatened to control the export of key software. The increase in this tariff is equivalent to pushing the Sino-US trade war to a new climax.
U.S. Treasury Secretary Scott Bessent has frequently appeared in the past few days, with the media face blunt. He was interviewed in Washington's Treasury Department building, saying that China's regulations are "the power of the global supply chain", and also criticized China's domination of rare-earth markets, pressing foreign competitors by low prices. Bessent was not a newman, he rose from Wall Street, hedge funds played around, before in Soros, and now in U.S. fiscal power. He stressed that the U.S. will not be "commanded or controlled", but also left behind a line: if China could delay these new rules for rare-earth exports, the U.S. could consider extending the current tariff suspension, not more than three months as short. Since the beginning
Look at what's happening in the Senate. On October 15, the U.S. Senate passed a bipartisan bill with 85 votes in favor, authorizing Trump to impose punitive tariffs of up to 500% on China companies that buy oil from Russia. This bill came quickly. It was originally aimed at the energy deal between Iran and Russia, but now it points directly at China on the grounds that China's purchase of Russian oil indirectly supported Moscow's military spending. When promoting the bill, Besent said that 85 senators had lined up in support, in order to keep allies, including India and others, to keep up with the pace and put pressure on China. He also mentioned that the United States is already imposing tariffs on India's purchase of Russian oil and is temporarily tolerating China, but it does not mean that it will not act. This 500% tariff sounds scary, but in actual operation it targets specific companies and does not cover them all, but the signal is clear: the United States wants to use economic leverage to choke on China to relax on energy and rare earths.
Why is the United States so anxious? To put it bluntly, the shortage of rare earths has hit their pain point. There is little rare earth mining in the United States and incomplete processing chains. The military-industrial complex cries about unstable supply chains every day. A report from the Ministry of Defense shows that magnet components in F-35 fighter jets and missile systems must be imported by China. Now that controls are tightened, yellow lights are on on the production line. Electric vehicles are even worse. Tesla and General Motors 'battery supply chains are directly stuck, and costs are rising. Besent said bluntly in an interview with CNBC that American car companies had called the White House to complain. This is not only an economic matter, but also involves military strength. Russia and China have given the United States headaches in military industry. Now that the limit on rare earths is equivalent to giving their opponents the opportunity to overtake in corners. Within the Trump administration, the military lobby group was under great pressure, forcing Besant and Trade Representative Greer to express their position, saying that China's move was "economic coercion" and that the world must be vigilant.
China has also responded to the hard-hearted. The spokesman of the Ministry of Commerce, Lin Zheng, said at a routine press conference that the US accusations were "deliberately making panic", and also approved Bessent's remarks on the Chinese negotiating representative, Li Zheng Steel, "seriously distorting the facts." Li Zheng Steel is the backbone of China's trade negotiations, and Bessent said he was "a little out of control" and "disrespectful", and even claimed that Chinese officials at the end of August threatened to "make chaos in the global system." In fact, China's rare-earth exports have not stopped completely, more censorship is aimed at preventing technology and illegal exports. The global market reacts? rare-earth
Against the background of the Sino-US game, we need to tell the truth. The United States wants to decouple, but it cannot do without manufacturing in China. From aircraft carrier parts to daily toys, American consumers have long been accustomed to low-priced goods. Now that tariffs are imposed, all inflationary pressure will be passed on to the people. I remember that in the wave of tariff wars in March, the United States lost nearly US$400 billion in one month. The data is traceable. This time too, Wall Street took a small dive, with the Dow falling 0.8%, but it quickly stabilized because the market bet on the continuation of negotiations.