China has imposed restrictions on the global sale of valuable rare-earth elements used in cellphones and electric vehicles. Around 90% of these minerals are located in China.

President Donald Trump’s new tax decisions have been met with backlash from many countries.

In a statement from China, one of the countries facing additional taxes, it was mentioned that samarium, gadolinium, terbium, dysprosium, lutetium, scandium, yttrium, and alloys in 7 categories of medium and heavy rare metals will be added to the export control list starting from April 4th. Chinese suppliers will be required to obtain government permission to export these rare earth elements. Additionally, Chinese customs officials will be able to seize shipments suspected of containing restricted elements.

USED IN A WIDE RANGE OF PRODUCTS These elements, for which China provides a significant portion of the global supply, are used in a variety of products like cellphones, electric vehicles, weapon systems, high-performance engines, nuclear reactors, electronic and optical equipment, space crafts, medical imaging machines, batteries, fuel cells, semiconductors, and superconductors.

90% OF THEM ARE IN CHINA China, which produces approximately 90% of the 17 rare earth elements, has demonstrated its intention to turn its economic dominance in this area into a strategic advantage with export restrictions. In response to the chip restrictions imposed by the U.S., the Chinese government had banned the export of rare earth elements like gallium, germanium, and antimony extensively used in defense and weapon systems and imposed restrictions on the export of graphite and its derivatives widely used in battery and fuel cell production, as well as in the defense and aerospace sectors.

INCREASE IN “RECIPROCAL TARIFFS” FROM THE USA President Donald Trump announced that an additional 34% tariff will be imposed on China within the framework of “reciprocal tariffs.” The U.S. administration had stated that a total of 34% additional customs duties, with an additional 24% “reciprocal tariff” on top of the 10% base tariff, will be applied to China. With the new tariff increases, the minimum customs tariff applied by the U.S. to imported goods from China had risen to 54%. In response to the 34% tariff increase introduced by the U.S. in the context of “reciprocal tariffs,” the Beijing government had announced that it will also impose an equal additional tariff and had declared sanctions targeting U.S. companies.