FT: U.S. Spares Rare Earths in China Trade War
Following public consultation period, plan to tariff rare earth imports abandoned
In September 2018, Adamas Intelligence spoke with the Financial Times about the U.S.’ decision to remove rare earth materials from the final list of China-sourced imports to which 10% tariffs now apply (increasing to 25% from January 1, 2019).
Among the key points emphasized during the discussion:
- It appears the US has backed down in full, almost certainly at the behest of US consumers that are concerned about their ability to compete with foreign incumbents, and their ability to secure an alternative source of supply in the near-term.
- While the U.S. may rely heavily on China for rare earth supplies, China is also heavily reliant on the U.S.’ consumption of its lanthanum and cerium, without which China would have a major issue with oversupply.