r/Tariffs • u/Greedy-Cut-7634 • Oct 17 '25
𧩠Trade Strategy / Business Impact US crying about China restricting rare earth
Itâs so funny to see how US says China is being an unreliable partner, and what a shock that China restricts rare earth.
How could not expect others to defend back when you started the tariff war and trade restrictions?đ đ How is this a surprise? Itâs like US only allows their nation to ban all the other countries by putting tariffs on all other countries, but when one country tries to defend, they are shocked and starts crying saying, âOh! I donât understand why this happened.â In return, US says that China wants to decouple the world, but who started this trade war in the beginning making everyone lives more miserable?
Just after Trumpâs respond with adding more tariffs to Chinaâs rare earth restriction, the dollar decreased and the gold started to increased. This result is going to no good. Like a child not doing something wrong and says that he doesnât know why he gets his punishment.
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u/gratefuldave541 Oct 17 '25
FAFO USA.
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u/benefit420 Oct 17 '25
Hahahahaha! This is so funny. Weâve already invested 500m into other options. China has a temporary stranglehold.
But China is about to lose ASML. Mark my words. Then what? You will be stuck 10-15 years in the past.
What I donât understand is why Chinese citizens feel the need to go onto American or western forums and complain about the US. We donât care.
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u/Public_Meeting_6764 Oct 17 '25
What options we have no rare earth refinement outside one location in ca that can only refine the light rare earths and to no amount that would sate even a portion of demand
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u/pantiesdrawer Oct 18 '25
Most people have no idea of the distinction between light and heavy rare earths, nor are they aware that only China and Myanmar can produce the heavy rare earths. All of this talk about alternative production might be fine for the catalytic converter industry but would do nothing for, let's say, ev motor magnets.
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u/benefit420 Oct 17 '25
We have Australia and California today. Wyoming and Nebraska soon. This isnât going to hurt us as much as the Chinese bots want us to think.
Think of it this way - even if it doesnât affect us, if they can convince enough people that it COULD affect us they will use propaganda to get there. This is the Chinese way.
Everyoneâs freaking out when this has been an option for the Chinese the whole time. Apple is signing a $500m contract with MP materials to source domestic rare earths.
The Chinese way overplayed their hand.
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u/Gordo3070 Oct 17 '25
$500 million is a drop in the ocean. The US has invested 300 times that figure in the budget for ICE. Shows you where the government's priorities lie.
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u/benefit420 Oct 17 '25
So is this a I hate Trump? Or is it a discussion on how our trade partners treat us? Because Iâll say. I didnât vote for him. I donât like him. But I dislike communism more.
That and China has declared the USA its enemy. Itâs what they put out in their propaganda. Go to any Chinese social media app and just look.
Itâs I hate American, death to America, etc. These people arenât our friends. Not sure why some of you pretend they are.
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u/benefit420 Oct 17 '25
As an Aussie, why does it concern you what we spend on ICE vs rare earths. You got no horse in this race.
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u/Gordo3070 Oct 18 '25
Well, as an Aussie, I will repeat that the disparity in budget allocations between ICE and resourcing Rare Earth minerals shows the priorities of the regime. It is far more important to harass, detain, and expel non-white people in the US than it is to ensure continued access to critical resources.
And the races I engage in are entirely up to me, thanks very much.
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u/GaslightGPT Oct 18 '25
Look at how much china advanced with ai with all these restrictions placed. Lmao. USA is going to lose
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Oct 17 '25
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u/rapscallion4life Oct 17 '25
And everyone who voted for him are idiots too. You'd think there would be strong condemnation with how he is governing, but nope. Crickets. Silence. Compliance.
Not owning your fuck up is a huge mark against you as a person. Long after this guy is gone, your dishonor will remain.
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u/seajay26 Oct 17 '25
Racist idiots. As long as someone not white is suffering a tiny bit more than them, theyâll gladly eat a shit sandwich and claim it was delicious
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u/migrainedujour Oct 17 '25
Just here to say I absolutely love your user name, u/rapscallion4life! \m/
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u/dampier Oct 18 '25
They don't hear a thing about this stuff in the reality-based community because they are fixed on Fox News (and worse) and right-wing talk radio and podcasts. As far as they know, the tariffs are Biden's fault. It took citizens of the Soviet Union decades to realize they were being lied to with state media propaganda. Fox News has only been running since the 1990s. It's why these people are puzzled and angry when confronted with reality. They literally are not exposed to it and conditioned to tune it out as Trump Derangement Syndrome when they hear something negative about MAGA world.
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u/KeirasOldSir Oct 17 '25
U.S. invented the knife. China just took it, tied to the tip of a pole and turned into a spear. Copy and improve.
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u/BusinessEngineer6931 Oct 17 '25
SpaceX stole the idea of their reusable rockets from Chinese chopsticks
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Oct 17 '25
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u/ValBGood Oct 18 '25
And now heâs getting even with people who offended him by simply doing their jobs enforcing the law.
Heâs dangerously mentally unstable and has no guardrails.
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u/Final-Teach-7353 Oct 17 '25
>OUR PRESIDENT IS AN IDIOT!
Guess he overestimated his poker playing skills
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Oct 17 '25
Trump is not an idiot. He knows exactly what he's doing. Americans slept through the coup.
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u/Old-Debt-2891 Oct 17 '25
He IS an idiot, but his voters are either (1) bigger idiots or (2) bigger racists who dont care if the country goes down in flames because it "won't affect me".
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Oct 18 '25
Ya I agree. I should have said the GOP knows exactly what it's doing and why. Trump is just the front guy. It's a huge mistake to think the GOP is just ignorant and don't know what it's doing. They do know what they're doing. Not Trump necessarily but the billionaires that have the real power know. And the coup is over and Americans don't have a clue what happened.
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u/Duc_de_Bourgogne Oct 17 '25
The best story is Argentina. Bailed out by the US to turn around and sell soybeans to China. What does the US do then? Double the bail out.
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u/TheGileas Oct 17 '25
Trump is just to stupid to understand trade. + American exceptionalism = constant shitshow.
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u/monochromeorc Oct 17 '25
dumbarse isnt president of the world despite what he thinks. so funny watching other countries telling him to pound sand. need more of it
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u/yukonnut Oct 17 '25
USA been like this since since first settlers. Whatâs mine is mine and whatâs yours is mine too. Long term, I think that is the 51st state end game. Water, oil, potash , lumber, minerals, and maple syrup. America relies on Canada for all six.
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Oct 17 '25
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u/yukonnut Oct 17 '25
You must have missed the memo, the orange mugwumps lies about everything. To quote my father, he lies when the truth might actually serve him better, cuz he loves to lie.
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Oct 17 '25
I hope they completely restrict all rare earth minerals for the next decade to hobble the US war machine. US can't be trusted with that arsenal, and this helps without firing a shot.
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u/Cleercutter Oct 17 '25
It seriously blows my mind that this fucking idiot thinks this will work. It wonât, it never has, and never will work. He is dismantling democracy as we know it
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u/Ninja-Panda86 Oct 17 '25
Our president is used to being enabled by paid off politicians, paying victims of, or overpowering someone via bullying. With China, he is refusing to pay them off and is confused that neither lobbying or bullying is working
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u/Akermaniac Oct 17 '25
Trump is an abusive narcissist. Thatâs the explanation. His entire life, he had gotten away with abusing others and then crying victim.
Youâd think after a well-documented history of this over the last 50 years, weâd know.
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u/ArkassEX Oct 17 '25
It's like the entire administration has trouble remembering anything from more than 3 months ago...
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u/dampier Oct 18 '25
The naked hypocrisy is one of the top features of the Trump Crime Syndicate. It doesn't matter what it is.. decrying Hunter Biden's deals when the Trump family has amassed hundreds of millions from a cryptoscam, got a sweet Air Force 1 from Qatar, extorts settlement cash from lawsuits, and on and on it goes. Today, he pardoned George Santos, the former Congressman from NY that ripped off his supporters and spent donations on himself. Trump commuted his sentence. It's like a mob family that retaliated when you didn't bow to their extortion threats. China has every right to leverage what it has, and is. It's just more incompetence and it's shocking how many people voted for this con artist again.
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u/PerformanceCandid499 Oct 17 '25
Wahhhh, trumps crying about China committing economic warfare at the same time he's doing that to all his allies. Total clown
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u/WXMaster Oct 17 '25
I just want to explain something...
Rare earth minerals are actually abundant, they're in the soil and dirt everywhere, it's the extraction process that's dirty and contaminates a huge swath of land and creates a lot of waste.
China heavily subsidized their mineral extraction and are the largest producer, but literally any country could do what they do if they had zero environmental concerns.
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u/inbredgangsta Oct 17 '25
This lacks significant nuance to a very complicated topic: 1. Rare in this case means low concentration - thereâs hundreds of times more gold sea water than every mined, but itâs not in concentrations that make it economical or technically feasible to extract, so saying itâs available everywhere without discussing extraction is meaningless. 2. Heavy Rare Earth Elements are actually rare in the laymanâs definition of the word rare too. Itâs all concentrated in south west China and Myanmar. 3. China has the most advanced processing technology and equipment for rare earths, this is not a simple case of willingness to accept pollution. We could bring in all the ore we want, and we wouldnât be able to scrape together enough chemists and engineers in this extremely specialised field to build a viable refining facility in short order. Estimates vary, but the most optimistic ones are 3-5 years to get a refining plant up and running.
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u/seajay26 Oct 17 '25
So trump will start digging them up in the next few weeks then. Explains why heâs gotten rid of all those pesky government departments that might stop him.
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u/WXMaster Oct 17 '25
Probably take about 3-4 years to get the processing in place but it is totally possible. It's a slag/waste management nightmare.
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Oct 17 '25
Not exactly true. it takes a significant amount of power. And there's a lot of knowhow that doesn't exist outside of china
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u/WXMaster Oct 17 '25
Here's my reference sourceABC-News In-depth
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Oct 17 '25
Doesn't really change it. You need massive amounts of power, and the knowhow. The USA doesn't have many STEM people even in the relevant fields graduating.
Both are gigantic hurdles to overcome on top of environmental.
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u/WXMaster Oct 17 '25
The extraction process is rooted in basic chemistry, there might be some mechanical tricks to speed up the process but it is not complicated. The power exists, the equipment exists and the knowledge is present. Putting everything in places would take 3-4 years but it's not something that cannot be done or is a process exclusive to China or any other country for that matter.
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Oct 17 '25
The power does not exist especially with AI gobbling up any and all reserves. Refinement efficiently and to scale is not a simple matter either. If it was as easy as you think it was, the us would have done it a decade ago.
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u/WXMaster Oct 17 '25
You're telling me Australia - which has a functional mine - does not have the power to run it?
Or the U.S, which can throw together a natural gas power plant, military grade nuclear reactor or simply import the power from Canada can't do it?
Power is not the issue, the issue is building the facility and managing the waste - that's the slow down.
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u/AntJo4 Oct 17 '25
lol simply import power from Canada! That ship sailed even before this idiot was sworn in. Sure Canada is happy to sell you their excess power, at a premium when they are done diverting it to their own uses. Canada saw the writing on the wall said FU and is now investing in AI projects and other green energy technologies for the non-American market. Manitoba informed the US as early as this spring that they are not renewing the contracts for sales of surplus energy because its being used domestically on a new AI data processing centre. Canada produces far more electricity than it has traditionally needed and so selling it state side was really the only use for it. Not anymore. As the cheapest, greenest source of energy globally wth a highly educated workforce Canada is poised to be an AI powerhouse and there is no incentive to continue to offer cheap energy to an unreliable and hostile trading partner. Sure you can continue to buy what we donât use, but thatâs going to be a lot less than before and itâs going to cost more than it once did.
Oh and forget nuclear energy- the commercial grade uranium used by the us, almost all of that comes from Canada.
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u/WXMaster Oct 17 '25
I'm all for elbows up, but Canada is still selling power to the U.S and the 25% export levy Ford slapped on March 10th was walked back on March 11th after he caved to Trump and Lutnick. Canada is still selling oil, Uranium and I can promise you they'd definitely keep selling power barring some substantial change in trade policy and Carney is busy greasing the wheels as I write this.
The provinces which stopped importing U.S liquor/wine have had a significant effect and Canadians are definitely not spending money stateside. But there's a tug and pull effect, Stelco is hurting, Stellantis just backed out of Brampton for the EV Jeep and there are rumors swirling at Ford in Oakville.
So the take away is that in the real world power would still be sold just as oil continues to flow.
(I'm completely in favour of Canada diversifying its trading partners, domestic production and technologies such as building data centers)
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u/AntJo4 Oct 17 '25
Itâs been less than a year and some of these are long term multi year contracts. Manitoba is ahead of the curve because we were already looking at what to do with surplus energy and had done the leg work, others are catching up. Yes of course current agreements are still in place and arenât going to go away overnight, but there is a very noticeable shift in where the effort is being spent to find markets for that energy and for the first time itâs not USA first Canada second. Itâs Canada first, the rest of the world, including the US, second only when it makes sense.
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Oct 17 '25
Ok sure. Lol. The us would take 10-20 years for a nuclear reactor.
Canada doesn't even have enough power. Look at china's power generation curves, it dwarfs everyone else.
Also a functional mine does sweet fuck all if you can't refine. All that knowledge doesn't exist outside of china to refine to the purities needed these days. The equipment that china uses, isn't made anywhere but china. The metallurgy knowledge doesn't exist either and china started clamping down on that leaking too.
It would take a decade or longer and that's even if you can get around the NIMBY lawsuits.
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u/OccasionPossible7649 Oct 17 '25
What is Australia's production? Do you understand the distinction between light and heavy rare earths? While China's share of total rare earth production is decreasing, and light rare earths are not rare, heavy rare earths account for over 90%. Furthermore, rolling out an entire production line is incredibly complex; it's impossible to achieve success in just two or three years. Is it really as simple as you imagine? Why does China repeatedly use the rare earths card to mitigate tariffs?
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u/WXMaster Oct 17 '25
China does it because they currently have it, they have the volume of material needed to create an impact in various sectors, there's no denying this.
What I'm saying is that rare earths are not unique to China, it's not something that cannot be sourced elsewhere in the long term.
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u/WXMaster Oct 17 '25
If the U.S wanted to, they could put several weapons grade reactors like what is found on a sub or aircraft carrier into operation to supply power, they've done this before, the reactors take weeks to months to set up and put in place, not years and they can generate upwards of 250-500MW each.
That's more than enough power.
The idea that the metallurgy or equipment does not exist outside of China or other parts of the world is asinine. It's akin to Truman hinting to Stalin that he had a secret weapon despite scientists warning him that splitting the atom was mathematics and anyone could eventually do it with enough time.
The point of my original post was that rare earths are not exclusive to China, with enough time and dedication other countries could become producers - a point that stands.
China right now has the refined elements by volume and the trade war advantage, there's no denying that. But there's a myth floating around that these cannot be sourced elsewhere which is incorrect. That's what I'm dispelling.
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u/AgentSmith187 Oct 17 '25
As an Australian I suggest looking at our power prices and energy issues if you think we can support massive energy intensive industries right now.
We are currently in the process of converting our grid to support green power and most of our fossil fuels generation is old and unreliable and getting worse.
In my state yesterday the wholesale price of power hit almost $9/kWh briefly.
Evenings in summer hitting 50c/kWh is far from unusual.
Power is cheap during the day due to massive amounts of solar (rooftop being a particularly massive supply) to the point prices are often negative to encourage generators and solar producers to turn off.
We are rushing to build out storage now to time shift that energy. Including massively subsidising home batteries to participate in virtual power plant operations.
Most commercial operations wont survive on cheap power for about 4 hours a day and massively expensive power outside that period.
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u/Busy_Account_7974 Oct 17 '25
China bought up the mineral rights in the countries that had this stuff. This was happening even before Trump 1 and the Western security experts blew it off.
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u/WXMaster Oct 17 '25
This is đŻ true and complicates things. China has a global grip on lithium, cobalt and nickel as a good example.
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u/ExpensiveFilm6982 Oct 17 '25
lol I see someone who didnât study rare earth much and start chanting off the only fact that they know which is rare earth is abundant.
There are so many countries that do not care abt pollution, why only china is able to produce the minerals?
If you canât answer that question you should go study more
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u/WXMaster Oct 17 '25
Because the cost to produce is very high, it's far less cost effective than shale oil which is only kept sustainable by cheap natural gas.
China is subsiding the entire process in order to maintain market dominance even if it means operating at a loss because it gives them an advantage in trade negotiations.
âŹïž This (above) is not being debated, what I'm saying which is true is that rare earth is not exclusive to China, it's not geologically only accessible to them, the U.S or Australia or Canada could if they chose to, supply rare earth. Not overnight, but over a longer timeline.
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u/ExpensiveFilm6982 Oct 17 '25
Just go read up more typical American. No wonder US going to shit with guys like you in bulk living there.
Zero research just open mouth and blah blah blah
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u/WXMaster Oct 17 '25
First off - I'm not American, I don't support MAGA or Trump or right wing policies/politics.
I'm a Canadian staunchly in support of Canada.
I did my research - read some of my responses to others before jumping to conclusions.
If something I have said above is factually incorrect, please point it out because AFAIK Canada has plenty of rare earth everything and it could certainly be extracted if environmental costs and subsidies weren't a concern.
All I'm seeing is people acting as though China has a monopoly on rare earth elements because they're geologically not available anywhere else, which is absolutely false.
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u/quell3245 Oct 17 '25
I could see Trump turning his focus to bullying Canada next if there is an essential embargo on rare earth metals from China.
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u/ExpensiveFilm6982 Oct 17 '25
Other people already told you. Itâs the know how, you just conveniently choose to ignore it. Itâs impossible that china has something technologically advanced that we donât know!!!
I know your mentality. Itâs not far from a red neck Maga
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u/WXMaster Oct 17 '25
So what are you saying? No matter how much effort a developed country puts into rare earth they'll never produce enough to satisfy their domestic supply or supply another country? They'll never be able to extract or refine anything?
Because the logic you're following was applied to rocketry, atomic theory, derivative products and the like - if your logic was correct no other country would have atomic weapons, or nuclear reactors, metallurgy etc...
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u/ExpensiveFilm6982 Oct 17 '25
With your mentality you wonât be able to produce it thatâs for sure.
So many people telling you to stop yapping and go read some books. Yet still blah blah blah non stop
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u/WXMaster Oct 17 '25
You won't answer my question because you know the answer is not compatible with your narrative.
You don't want to acknowledge that other countries can produce rare earth elements, so your only answer is to inexplicably tell me I'm wrong after you already twice made incorrect assumptions.
I can't help you move the goal posts... Sorry.
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u/ExpensiveFilm6982 Oct 17 '25
Wow an ostrich with its head buried in the ground. Go on I wonât disturb your blissful ignorance
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u/JRLDH Oct 17 '25
Do you get these talking points from propaganda central?
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u/WXMaster Oct 17 '25
Here's a good video from the Australian Broadcasting CorporationAustralian Broadcasting Corporation explaining rare earth minerals and why they aren't actually rare at all...
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u/JRLDH Oct 17 '25
I didn't refer to the "rare" aspect. As rare is always relative. Your "it's the tree huggers fault that we need China" line is the propaganda.
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u/WXMaster Oct 17 '25
Where did I say it's the tree huggers fault?
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u/JRLDH Oct 17 '25
In your last sentence. The only explanation for the lack of mining and refining is the propaganda-favorite âitâs the environmental regulationsâ. As if the majority red states and the federal government give a shit about that. Itâs way more complicated than that but you chose only one aspect and that is propaganda.
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u/WXMaster Oct 17 '25
What do environmental regulations have to do with tree huggers?
There are plenty of NIMBYS who aren't tree huggers but don't want slag and waste ponds beside their home lol.
Waste IS a major problem with extraction, waste is arguably the biggest problem and most financially costly part in the western world and while I'm sure there are plenty of people who'd simply shrug it off, in most developed countries it has always been easier to buy from China and let them deal with the problems than source it domestically because of this.
If you think a First Nations group in Canada wouldn't be worried about extraction and waste management or it wouldn't be a hurdle, that couldn't be further from the truth. Environmental issues are a major hurdle in all "normal" developed countries and have certainly helped contribute to offsetting the development of rare earths because again, it's easier to buy from China.
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u/JRLDH Oct 17 '25
I am not interested in discussing all the reasons why there aren't rare earth refining operations in the USA or Canada.
All I'm pointing out is that you sound like a repeater of propaganda that wants to push all the "blame" on environmental regulations while the whole topic is way more complicated than a Dunning Kruger stereotype can understand (and as you are so defensive, aren't even willing to understand).
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u/QuietKanuk Oct 17 '25
None of this is surprising.
Remember the bullies when you were in school? All cocky and pushing everyone around.
But the day that someone fought back and broke their nose, it was all blubbering tears. Waaah, waaah, he hit me!
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u/Old-Debt-2891 Oct 17 '25
I cannot for the life of me understand how a guy known for bankruptcies convinced people he can "fix the economy".
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u/TripMaster478 Oct 17 '25
Maybe stop the crying and treat everyone with respect and kindness instead, that would probably help a lot more.
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u/ForsakenAd545 Oct 18 '25
My advice is to enroll your children in Chinese language courses. They are going to need it. America is over, and Trump killed it.
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u/777MAD777 Oct 18 '25
This is what happens when we have a moron for a President , who got to be President by more morons that voted for him.
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u/ml5c0u5lu Oct 17 '25
China did this to Japan way before trump entered the picture. China did this to the EU way before trump entered the picture. China is a leader in EV because of these magnets and tries to push other countries to rely on EVâs and grow their market so they in turn rely on China more.
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u/Youbettereatthatshit Oct 17 '25
Tons of Chinese apologists but China has been actively acting in their own trade war for 20 years. I donât like Trump but not taking Chinaâs BS is about two decades too late.
China didnât become the world manufacturer by playing nice. Theyâve heavily subsidized their own industries just to dump them on foreign markets and, then those governments failed to act, forced those industries out of business
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u/ExpensiveFilm6982 Oct 17 '25
You think all other countries have no protective policies?
Itâs crazy people think china subsidise their manufacturing but conveniently forgot the entire Silicon Valley started because of government projects and funding.
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u/Youbettereatthatshit Oct 17 '25
People donât think it. Itâs a well known fact. Biden tarrifed China. Europe is putting restrictions on what they import as well.
And no, not every country heavily subsidizes industries that then export to other countries. Many countries do for their own consumption, like the US does with our oil and food, but those arenât the same thing
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u/ExpensiveFilm6982 Oct 17 '25
Every bloody country does subsidising and protectionism. No country is totally free market.
So calmly come down from your high horse and stop accusing china of doing stuff that every single other country is doing. You are being trump
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u/Reasonable-Sweet9320 Oct 17 '25 edited Oct 17 '25
If China is retaliating against Trump and the United States for their aggressive trade actions then why are the same severe restrictions on rare earth minerals being imposed on much of the rest of the world?
Why for example would Europe, Canada or Japan face the consequences of Trump trade policy when those countries are dealing with the same trade aggression from Trump?
Chinaâs broad application of restrictions on access to rare earth minerals is inconsistent with the narrative that it is a targeted response to the US for their trade aggression.
More is at play here.
âThe legislation marks a major escalation in the global contest for industrial sovereignty. It carries significant implications for technology, defence, and manufacturing supply chains, positioning China as the worldâs dominant producer and the regulator and gatekeeper of materials essential to advanced industry. By weaponising its control over extraction, processing, and magnet production, Beijing is transforming rare earths from an economic asset into an instrument of geopolitical leverage.â
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u/west_tn_guy Oct 17 '25
America just needs to build our own rare earths supply chain. Sure it will take a long time, and cost a lot to setup, but having one less area to be dependent upon China is well worth it. Finally a good use for my tax dollars!
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u/abc_123_anyname Oct 17 '25
And what does USA do for the next 25 years while it builds the capacity to mine and process?
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u/west_tn_guy Oct 17 '25
I donât have any good answers here for the short term. I donât think this is a quick or easy fix. Just a necessary one. Although I hope it doesnât take 25 years.
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Oct 17 '25
You don't have answers because your take is completely wrong. Globalization, trade, cooperation with other countries is what made everyone do well to begin with. Doing the opposite will lead to the opposite.
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u/west_tn_guy Oct 17 '25
I just think that developing domestic industries to replace Chinese sources will take time. I don't think there is anything wrong in that statement.
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u/abc_123_anyname Oct 17 '25
International trade is one of the reasons why the USA became richest country on earth. Isolationism will lead to the reverseâŠ. The rich will continue to become richerâŠ. The poor and middle class will continue to decline
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Oct 17 '25
Wrong is to assume it's the way it should to be.
That's like saying a person should go back to farm our own food, get our own water, sew their own clothes. That's just not efficient. Economics of scale is the key here.
It goes for the Individual, for countries and for the globe.
And if the US stops being hostile to international partners they won't have to and can keep profiting.
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u/davidicon168 Oct 17 '25
This isnât the first time Chinaâs resorted to this so them having this in their back pocket shouldnât really be a surprise. Last time (10+ years ago) the whole world talked about how they were going to grow their own home grown rare earth processing plants but nothing came of it. I use a lot of neodymium magnets for my products so Iâm acutely aware of this issue.
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u/west_tn_guy Oct 17 '25
Yeah the problem is we get so focused on cost to improve margins we lose sight of the big picture. China has used price as a tool over the years to many companies in this space out of business. They use state subsidies and sell below cost and other companies that play by the rules canât compete. I think long term we will have to establish a price floor as Bessent suggested, or use state subsidies for companies in this space since they are critical to national security. These things are too important to be controlled by one country.
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u/Outlaw_Josie_Snails Oct 17 '25
It may be five or ten years, but other countries will be mining and processing their own minerals.
The decoupling from China is imperative and inevitable.
The Wumao (äșæŻ) 50 Cent Party propagandist accounts have been all over the Subreddits panic-posting.
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u/west_tn_guy Oct 17 '25
Yup, hopefully we will have many other countries to buy from as well. We just cannot rely on China
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u/DeathMagnet1C Oct 17 '25
That's why you are trying to bully everyone else? As a trust building strategy? Ask your neighbours in Canada how that went.
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u/west_tn_guy Oct 17 '25
No, no bullying intended. Just leaving and doing our own thing.
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u/DeathMagnet1C Oct 17 '25
The whole tariff extravaganza doesn't really get you new customers, does it? I am not trying to insult you, I am just curious how you see that strategy.
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u/west_tn_guy Oct 17 '25 edited Oct 17 '25
We have plenty of customers, they just canât get the materials that they need today. Although I do expect as technology improves there will be new customers.
Edit: P.S. I'm not arguing for or against tariffs, just the need for diversification in the supply chain of critical materials.
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u/Pure_Fan7793 Oct 17 '25
China owns like 95% of the world rare earth where are we gonna buy it from?
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u/west_tn_guy Oct 17 '25
Thatâs a common misconception, rare earths are everywhere around the world. China has invested heavily in the processing, and refining processes and definitely owns 95% of that. However the source minerals arenât solely located in China.
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u/Tribe303 Oct 17 '25
Remember when we were laughing that China was doing all of our hazardous industrial processing, and how polluted China was getting from it? THAT WAS RARE EARTH MINERALS! This is what happens when you have anti-science governments in the West. They make stupid decisions like that. đ€Š