U.S. Threatens Tariffs Over China Rare-Earth Controls

President Trump threatened a major increase in U.S. tariffs after China announced tighter export controls on rare-earth materials, calling the move "very hostile."\n\nBeijing's new rules, effective Thursday, require exporters to obtain special approvals to ship products that contain rare earths sourced from China, even if those products are manufactured abroad by non-Chinese firms. An English translation of the guidance did not specify penalties for noncompliance.\n\nChina supplies an estimated 95% of the world's rare-earth magnets, according to Wood Mackenzie, and those materials underpin semiconductors, electric-vehicle batteries, jet engines and many defense systems. Washington views access to these critical minerals as strategically vital.\n\nTrump warned of a "massive increase of Tariffs" and said other countermeasures are under consideration; he also threatened to cancel a planned meeting with President Xi Jinping at an upcoming Asia-Pacific forum.\n\nThe announcement rattled markets: the S&P 500 fell about 131 points, the Dow dropped 624 points and the Nasdaq declined nearly 600 points as investors assessed the risk of renewed trade friction and supply-chain disruption. Analysts warned the move marks a renewed flashpoint in U.S.-China economic relations with implications for tech and defense supply chains.