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US, China dig in as rare earth, trade spat escalates

Oct 12, 2025, 12:18pm EDT
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Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu
Stringer/Reuters

China on Sunday vowed countermeasures against the US if President Donald Trump imposes a further 100% duty on Beijing, escalating the countries’ spat over rare earth minerals.

Trump made his latest tariff threat on Friday after China imposed new restrictions on rare earth exports.

Both sides are digging in: US Vice President JD Vance said settling the dispute will be a “delicate dance,” but Washington has “far more cards” than Beijing, which signaled it is “not afraid” of a trade war.

US stocks tumbled after Trump went on the offensive; a broader deterioration of ties could also imperil China’s recent market rally and cast fresh doubts over the country’s investability.

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