SCMP: Is the U.S. Shooting Itself in the Foot with Tariffs on Chinese Rare Earths?

Jul. 27, 2018

Unclear how tariffs offer the U.S. any immediate upside or inflict any pain on China

In July 2018, Adamas Intelligence spoke with the South China Morning Post about the U.S.’ decision to impose a 10% tariff (now 25%) on rare earth materials imported from China amidst the escalating U.S. – China trade war.

Among the key points emphasized during the discussion:

  • Unless the tariffs are part of some larger, long-term strategy to support and incentive development of domestic resources and push U.S.-based end-users to source domestically, then we do not see how the move offers the U.S. any upside, or inflicts any pain on China.
  • The focus by U.S. policy-makers has been to push for development of U.S.-based mines¬†rather than creating the critical infrastructure that upgrades the mine output into market-desired materials, such as NdFeB magnets.¬†Until that happens, the establishment of new mines will only enable the U.S. to meet a portion of its needs domestically.

Read more about what was discussed in this recent article from the South China Morning Post.

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