Trump Raises Tariffs on China, Rare Earth Supply Disruption...

Trump Raises Tariffs on China, Rare Earth Supply Disruption Looms.
By Michael Kern. 9 Apr 2025.


President Trump announced a 90-day pause on increased tariffs for most countries willing to negotiate trade deals, but simultaneously increased tariffs on China, citing a “lack of respect.”

China has retaliated against the US tariff increase by imposing levies on US goods and restricting exports of rare earth minerals, which are critical for tech and defense industries.

How China's Rare Earth Restrictions Could Backfire

Dominating 70% of global supply, China’s latest restrictions target seven rare earths, including terbium, lutetium, and yttrium, with scant production elsewhere, threatening shortages for U.S. and European industries.

While not an outright ban, the uncertainty is rattling supply chains.In response, the U.S. and EU are racing to ramp up domestic rare earth production. Blackboxstocks Inc. (NASDAQ: BLBX) announced its merger target, REalloys Inc., acquired PMT Critical Metals Inc. on March 31, 2025, securing an Ohio facility producing rare earth metals and NdFeB magnets for the U.S. Defense Logistics Agency and Department of Energy. Paired with REalloys’ Hoidas Lake project in Canada (2.153 million tonnes of rare earth oxides), this bolsters North American supply for defense, robotics, and electric aviation—aligned with Trump’s critical minerals directive.

Companies like Lynas Rare Earths are also facing pressure to scale up. Japan’s 2010 crisis proved diversification is possible, but experts warn it’s a slow process amid China’s tightening grip.