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Meanwhile, there is a strong lobby in the US, led by major industries, particularly tech-related, which opposes the imposition of the excess levy since it will largely pinch the pockets of US citizens by way of higher prices to be paid due to higher duties.
The US president threatened Beijing with a steep tariff hike of 200% if the latter did not supply rare-earth magnets, used for the manufacturing of a range of products, including smartphones and electric vehicles, to Washington. China is the world’s largest supplier of these critical materials.
In the ongoing trade war between Washington and Beijing, the Chinese government has tightened its grip on exports of several rare metals, a move not appreciated by the White House. The 200% tariff threat comes despite a 90-day pause on tariff hikes that both countries agreed on 12 August. The 90-day truce expires in mid-November.
The effect of Trump’s hint at a hypothetical hike, despite the pause in negotiations, is still unclear, and no official comment from Beijing has been made so far. Meanwhile, there is a strong lobby in the US, led by major industries, particularly tech-related, which opposes the imposition of the excess levy since it will largely pinch the pockets of US citizens by way of higher prices to be paid due to higher duties.
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They point out that Chinese exports to the US have already been shrinking in terms of that country’s GDP, over the years. That means China has already penetrated other markets to make good on what they have been exporting to the US. They argue that the arbitrary imposition of duties and angry outbursts may affect the local industry.
