The Trump administration's additional 10% tariffs on all Chinese imports took effect Tuesday, prompting Beijing to fire back with retaliatory measures, including tariffs on US goods, antitrust probes on US big tech firms, entity list additions, and export controls on critical minerals.
Focusing on export controls on critical metals, Beijing imposed restrictions on key minerals such as tungsten, tellurium, bismuth, molybdenum, and indium, along with certain metallic compounds derived from them.
Days later, Bloomberg's Annie Lee spoke with Lewis Black, chief executive officer of North America's Almonty Industries, who stated his customer base is in a "state of disbelief" after Beijing's export controls on the metal used in electronics, defense systems, and machinery.
"It's the warning shot, because we cannot exist without it," Black told Lee. He noted: "Our economy, manufacturing, defense, everything, is so dependent on it. And yet, Russia, China and North Korea have about 90% of the output."
Shares of Almonty in the US have surged 40% in recent days. The company describes itself as "the largest tungsten mining company in the world outside of China."
"The question is, how much will China tighten the screw to be heard?" Black said, adding, "I think the news was bad, but I think it's going to get worse."
Beijing's willingness to restrict exports of critical minerals to the US became evident in late 2024 when it banned the export of gallium, germanium, and antimony.
Beijing's ongoing export restrictions on critical minerals should serve as a warning to America's military-industrial complex and chipmakers. Perhaps it's time for the Trump administration to ramp up efforts to expand domestic supply chains for mining and refining rare earth minerals, reducing dependence on China.
