Part 5/10:
The Strategic Posture Toward Rare Earths and China’s Promise
The issue of rare earths underscores both a vulnerability and an opportunity. China dominates this market, and their recent threats to impose export controls alarmed U.S. officials. However, Bessant underscores that President Trump’s threat to impose an additional 100% tariff leverage was instrumental in securing the postponement.
Over the next year, the U.S. aims to "derisk" its supply chains without decoupling from China. This involves ramping up domestic production and forging reliable partnerships, particularly for critical materials such as rare earth magnets. While reliance on China cannot be entirely eliminated, diversification and strategic reserves are central to reducing vulnerabilities.