Chinese exports of a wide range of rare earthminerals and magnets, the key to semiconductor and automotive industries worldwide, shouted to a shouting to a rising trade war with the US.
Shipping the most important minerals was suspended last week, increasing the risk of overseas business deficits in these industries, Reuters reports, citing resources near Beijing.
After the imposition of President Donald Trump of steep rates on Chinese goods, Beijing limited the export of seven rare earth and related materials used in the car, defense and energy industry.
According to the sources, exporters in China must now apply to the Ministry of Trade for licenses, a process that can take about six or seven weeks to a few months.
Overseas shipping of these key materials and magnets, which are essential for the composition of cars, robots and even drones and missiles, stopped on April 4, as companies started a long, uncertain waiting for their government licenses.
“If we are asked by my clients when their loads can leave China, we give them an estimated 60 -day time, but it can actually take longer than that,” one China scarcity told Reuters about the condition of anonymity.
China produces more than 90 percent of some of the world’s most critical rare earthminerals such as yttrium, disprosium and terbium, and the new export restrictions break their supply lines to users around the world.
Industry experts are concerned that if export stops last more than two months, it can deplete existing stock of these minerals built by customers.
Mr. Trump, meanwhile, has doubled on his controversial trade policy, saying that no country, especially China, is exempt from tariffs on their exports to the US.
“Nobody gets” from the hook “for the unfair trade balances and non-monetary tariff barriers used by other countries against us, especially not China, which is by far the worst!” Mr. Trump said in a post on his truth social platform.
The president said he would announce the tariff rate on imported semiconductors next week, adding that there could be a flexibility for some businesses in the sector.
“We unaware it from many other businesses because we want to make our chips and semiconductors and other things in our country,” he said.
It is unclear whether producers of consumer products such as smartphones and laptops can see exceptions.
Mr. Trump said some of these products are just moved to another “tariff bucket”.
“These products are subject to the existing 20 percent fentanyl rates,” he said, referring to its long -standing accusation of Chinese businesses that provide US groups involved in the creation of synthetic opioids.
Howard Lutnick, secretary of the trade in Mr. Howard Lutnick, explained that “a special focus type of rate” will soon cover in a month or two smartphones, computers and other electronics.
“He says they were exempt from the reciprocal rates, but they are included in the semiconductor rates that probably come within a month or two,” Mr. Lutnick told ABC News.
Democratic Senator Elizabeth Warren criticized the latest plan of the Trump administration and called it a ‘no tariff policy’, but only ‘chaos and corruption’.
