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U.S. Trade Representative Jamieson Greer remarked on Wednesday that China’s new restrictions on rare earth exports constitute a “global supply chain power grab.”
Greer, along with Treasury Secretary Scott Bessent, addressed reporters at the Treasury Department in Washington, D.C. Bessent stated that Beijing’s actions are a provocation.
Their comments are the latest indication of the worsening U.S.-China trade relations following Beijing’s unexpected announcement on Thursday limiting rare earth minerals and related technologies.
In response, President Donald Trump threatened to impose 100% tariffs on China as well as export controls on “any and all critical software.”
Greer informed NBC News that the only way for China to avoid the newly proposed tariffs is to reverse the export controls.
Both Bessent and Greer were cautiously optimistic that Beijing would back down and return to the negotiating table
“Our expectation is that they won’t implement [the controls] and that we’ll return to the point we were a week ago,” Greer said, “restoring the agreed tariff levels and the agreed flow of rare earth magnets.”
Meanwhile, Bessent mentioned that Washington is consulting with its allied trade partners to formulate a collective response to the restrictions, asserting, “This is China vs. the world. We and our allies will neither be commanded, nor controlled.”
Rare earth minerals are critical to the manufacture of a wide range of products such as batteries, electric vehicles, household goods, TVs and smartphones and solar panels.
After three rounds of what the officials called successful trade talks, China also has yet to officially approve the sale of TikTok U.S. and has not bought any soybeans from American farmers since May.
Nonetheless, Greer and Bessent said the current 90-day tariff pause in place with China — renewed at least three times so far — could be re-upped again for a longer interval if China lifts the rare earths restrictions.
