Tensions between the U.S. and China just reached a new high point. The White House announced that China could face tariffs of up to 245 percent on certain imports to the U.S., citing retaliatory trade behavior and national security concern.
This aggressive move was revealed late Tuesday in a White House fact sheet accompanying a new executive order signed by Donald Trump. The order authorizes an investigation into the risks associated with America’s growing dependence on imported processed critical minerals and derivative products, many of which are supplied by China.
The steep tariff is a response to what it called China’s “retaliatory actions” in the ongoing economic standoff. Although details on which products will be targeted weren’t fully outlined, the messaging was strong, signaling the U.S. is ready to hit back hard.
“China has become the dominant global supplier of many processed critical minerals,” the statement noted. “Our reliance on imports for these materials creates vulnerabilities that threaten our national security and economic competitiveness.”
The executive order directs federal agencies to review how this mineral dependence may be weakening the country’s supply chains and opening the door to strategic vulnerabilities. That includes everything from electric vehicle batteries to advanced electronics, industries that are crucial to the U.S. economy and military.
As the trade standoff deepens, global markets are plummenting. A tariff this high, could drastically reshape the cost and flow of critical materials, while further straining relations between the world’s two largest economies.
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