Against the already volatile backdrop of global trade, on August 7th, the "reciprocal tariffs" previously signed by Trump officially came into effect, imposing tariffs ranging from 10% to 41% on 69 trading partners. This is undoubtedly like dropping a boulder into the lake of the world economy, causing huge waves. Among the many affected fields, rare earth - related industries have attracted special attention due to their unique strategic position and wide range of applications.
Under the Pressure of Tariffs, the Global Rare Earth Trade Pattern May Change
As an important consumer of rare earths in the world, the adjustment of the US tariff policy is bound to have a profound impact on the flow of global rare earth trade. Many countries closely related to rare earth trade are on the list of tariff increases. For example, Japan, South Korea and other countries have long relied on imported rare earths to support the development of their high - end manufacturing industries such as electronics and automobiles. The 15% tariff imposed this time will undoubtedly increase their cost of importing rare earths. Enterprises in these countries are in key positions in the global industrial chain, and the rise in costs will be transmitted along the industrial chain, affecting the prices and market competitiveness of many downstream products.
Looking at Europe, the UK is subject to a 10% tariff, and Switzerland to 39%. Europe has a stable demand for rare earths in high - end manufacturing, new energy vehicles and other fields. The change in tariffs may prompt European enterprises to re - examine their rare earth supply chains. Some enterprises may try to find new sources of rare earth imports with lower tariff costs, which may break the relatively stable pattern of the original global rare earth trade and lead to new changes in trade flows.
The Effect of China's Rare Earth Countermeasures Continues, and the US Dilemma is Highlighted
Since China imposed export controls on some medium - and heavy - rare earth - related items in April this year, the effect has continued to ferment. As the world's largest producer and exporter of rare earths, China holds a pivotal position in the rare earth field, with a large proportion of the world's rare earth separation capacity and deep processing patents. The entry into force of the US "reciprocal tariffs" this time, on the other hand, has further highlighted the effect of China's previous rare earth countermeasures.
Although the United States has the second largest rare earth deposits in the world, it is heavily dependent on China for rare earth processing and refining technologies. The purity of rare earths produced domestically is difficult to meet the strict requirements of its high - end manufacturing industry, military industry and other fields for rare earths. After China's export control, the price of rare earths in the United States has soared, and the international market price of some rare earth elements has risen sharply. To solve this dilemma, the US government has invested heavily. The Pentagon has invested a large amount of money in shares in the largest rare earth producer in the United States, but private capital is not interested. Due to problems such as market chaos, difficult pricing, long capital return cycles and lack of core technologies in the US rare earth industry, it is difficult for the United States to achieve self - sufficiency in rare earths in the short term.
Under the New Tariffs, the US "Self - Rescue" Road for Rare Earths is More Bumpy
After the entry into force of the "reciprocal tariffs", the "self - rescue" actions of the United States in the rare earth field are facing more obstacles. On the one hand, the United States has imposed a 40% ad valorem tariff on Brazilian products imported into the United States, and the tariff rate on most Brazilian products imported into the United States has been raised to 50%. Brazil has certain rare earth resources. Previously, the United States tried to strengthen cooperation with Brazil in the rare earth field to reduce its dependence on Chinese rare earths. However, high tariffs will undoubtedly weaken the competitiveness of Brazilian rare earth products in the US market, increase the cost for the United States to obtain rare earths from Brazil, and hinder this cooperation plan.
On the other hand, Trump claimed that he would impose a 100% tariff on imported semiconductor products (although the specific implementation details have not been clarified and there are some exemptions), which also has a complex impact on the development of the US rare earth industry. The semiconductor industry is closely linked with rare earths, and many semiconductor production processes need to use rare earth materials. High tariffs may hinder US semiconductor enterprises from obtaining advanced overseas rare earth - containing semiconductor products and technologies, thus affecting their own development. The hindered development of the semiconductor industry will, in turn, affect the US investment in rare earth technology research and development and application expansion, forming a vicious circle.
In general, the entry into force of Trump's "reciprocal tariffs" has triggered a series of chain reactions in the rare earth field. The US predicament in rare earths has not been alleviated by the tariff policy, but has become more difficult. The global rare earth industry pattern is also undergoing profound changes under this tariff storm. How all parties readjust their strategies and optimize the supply chain under the new situation will become the focus of attention in the rare earth field in the next period of time.
Aug 08, 2025|
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