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China’s retaliation shakes US: Will Trump’s bet on Ukraine pay off?

China's trade restrictions have posed a significant challenge for the United States. While the U.S. is attempting to navigate the situation through strategic measures, the conflict appears likely to persist for an extended period.

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Donald Trump (X/MarioNawfal)

The ongoing trade war between the United States and China has taken a significant turn. In response to the U.S. imposing tariffs on Chinese imports, China has countered by restricting exports of 25 critical minerals essential for various industries. This move is expected to impact the American electronics sector, which relies heavily on these resources.

Among the minerals China has restricted are tungsten and tellurium, which are crucial components in solar panels and other electronic products. China has justified this decision by citing "national security interests." Experts suggest that finding alternative sources for these minerals will be a challenging task for the U.S., given China's dominance in global mineral production.

U.S. response: Seeking alternative supply chains

In response to China's latest trade maneuver, the U.S. government is actively seeking alternative sources for rare minerals. Former President Donald Trump had previously emphasized securing rare earth metal (REM) supplies to counter China's influence in the sector. The U.S. is now exploring new trade partnerships, including Ukraine, to ensure a stable supply of these critical resources.

The growing U.S.-China trade war

The latest trade developments highlight the deepening tensions between the two economic powerhouses. The U.S. had earlier imposed a 10% tariff on Chinese imports, which triggered Beijing's countermeasures. These retaliatory actions are expected to intensify the economic conflict, potentially disrupting global supply chains.

China's counter Tariffs on U.S. goods

China's counter-tariffs will impact American imports, including large-engine vehicles, LNG, crude oil, and agricultural machinery. Meanwhile, the deadline for U.S. tariffs on Chinese imports expired, prompting China to officially implement its retaliatory trade measures. The Chinese Ministry of Finance has accused the Trump administration of violating international trade regulations with these unilateral tariff decisions.

With both nations standing firm on their trade policies, the coming months will be critical in determining how this economic standoff unfolds.

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