In a ruling against DJI last month, a U.S. district court allowed the DoD’s designation of the Chinese drone manufacturer as a “Chinese military company” to stand. Despite disagreeing with the DoD’s allegation that DJI is “indirectly owned by the Chinese Communist Party,” the judge determined that there is evidence that the company does contribute to the “Chinese defence industrial base,” as drones are of substantial use in military contexts.
BEIJING (Reuters) -China tightened its rare earth export controls on Thursday, expanding restrictions on processing technology, unauthorised overseas cooperation and spelling out its intention to limit exports to overseas defence and semiconductor users.
Exports of technology used to mine and process rare earths or make the associated magnets is barred without permission, the Ministry of Commerce said in a statement. Many of these technologies are already restricted and it was not immediately clear what the new rules will add.
China added several rare earths and related material to its export control list in April, however Thursday’s announcement explicitly said licenses are unlikely to be granted for defence companies as well as certain users in the semiconductor sector.
China Limits Critical Mineral Supplies to Western Defense Manufacturers– legalinsurrection.com Source Link Excerpt:
Our amazing Leslie Eastman has been reporting on this subject since January:
Defense manufacturers must “stop buying rare-earth magnets that contain China-sourced minerals by 2027.”
Well…it looks like China will make that happen before 2027.
The Wall Street Journalreported that China is now limiting the flow of critical minerals to Western defense manufacturers:
Earlier this year, as U.S.-China trade tensions soared, Beijing tightened the controls it places on the export of rare earths. While Beijing allowed them to start flowing after the Trump administration agreed in June to a series of trade concessions, China has maintained a lock on critical minerals for defense purposes. China supplies around 90% of the world’s rare earths and dominates the production of many other critical minerals.
As a result, one drone-parts manufacturer that supplies the U.S. military was forced to delay orders by up to two months while it searched for a non-Chinese source of magnets, which are assembled from rare earths.
Certain materials needed by the defense industry now go for five or more times what was typical before China’s recent mineral restrictions, according to industry traders. One company said it was recently offered samarium—an element needed to make magnets that can withstand the extreme temperatures of a jet-fighter engine—for 60 times the standard price. That is already driving the cost of defense systems higher, say suppliers and defense executives.
Talks between China and the U.S. to stave off the looming tariff re-activation deadline have broken off, for now. The talks happened over a two-day period in Sweden between respective trade representatives. The deadline is August 12.
India, however, received notice it would be getting a Russian Ties Tariff of 25%. The President said of the penalty, “Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country. Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST.”
US-China trade talks in Sweden end without truce extension– www.france24.com Source Link Excerpt:
Two days of talks between delegations from Beijing and Washington ended without an extension of the tariff truce set to expire on August 12. US Treasury Secretary Scott Bessent said that Donald Trump still needs to be briefed on the discussions. Also, the International Monetary Fund has revised its global growth outlook upward, as Trump’s tariff policies are scaled back. And, Lesotho’s textile industry remains on edge ahead of the August 1 tariff deadline.
Trump announces 25% tariffs on India over ties to Russia– www.washingtonexaminer.com Source Link Excerpt:
President Donald Trump announced on Wednesday morning that he is authorizing 25% tariffs on India, which will take effect Aug. 1, due to the country’s import of Russian energy and military equipment.
“Remember, while India is our friend, we have, over the years, done relatively little business with them because their Tariffs are far too high, among the highest in the World, and they have the most strenuous and obnoxious non-monetary Trade Barriers of any Country,” the president said in a post on Truth Social.
“Also, they have always bought a vast majority of their military equipment from Russia, and are Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE — ALL THINGS NOT GOOD! INDIA WILL THEREFORE BE PAYING A TARIFF OF 25%, PLUS A PENALTY FOR THE ABOVE, STARTING ON AUGUST FIRST,” he continued.
The first new U.S. rare-earth mine in 70 years broke ground this month in Wyoming.
Ramaco Brook Mine, which contains 1.7 million tons of rare earth minerals, is a “groundbreaking discovery” that “marks a turning point for America,” the Department of Energy announced.
The groundbreaking discovery at the Ramaco Brook Mine marks a turning point for America as the first new rare earth facility in 7 DECADES, containing 1.7 MILLION tons of rare earth oxides.
Developing American supply chains for rare earth minerals STRENGTHENS our energy security.
— U.S. Department of Energy (@ENERGY) July 9, 2025
As U.S. tariffs tighten the screws on China’s export machine, Beijing is striking back with strategic precision. Export restrictions on rare earths are now Beijing’s latest move to break down European trade barriers and push back against escalating pressure from Washington.
In today’s global trade standoff, the gloves are off. The U.S. is wielding its market clout — 25% of global consumption originates from the American domestic market. Anyone in the export business must deal with the United States. China, meanwhile, holds an current monopoly on rare earths — and is making it clear it will not hesitate to weaponize that dominance. The stakes are rising, and national interests now override globalist courtesies.
Europe is learning the hard way: in geopolitics, there are no friends, only temporary alliances. China’s tightened export controls on rare earth elements risk plunging Germany’s industrial sector into a severe resource crisis. With nearly 85% of global rare earth refining under its control, Beijing is the chief supplier of key metals like dysprosium, terbium, and yttrium — critical for electric motors, medical tech, and defense systems.
Since April 2025, access to these raw materials has been restricted to licensed exporters only — a de facto embargo. The fallout is immediate: several German manufacturers have already been forced to scale back operations. Others face complete shutdowns. Industrial metal prices continue climbing, and the fragility of global supply chains is now exposed in brutal detail. Europe’s resource dependency is becoming a major liability — and a strategic weakness in the coming trade war negotiations.
President Trump’s renewed tariff war with China is escalating tensions far beyond trade policy. Despite a brief truce in May, Trump recently admitted that negotiating with Xi Jinping is “extremely hard,” and both sides have since accused each other of violating the agreement. As economic diplomacy unravels, the broader U.S.–China relationship grows more volatile, raising the risk that Beijing may abandon any remaining hopes for peaceful coexistence.
A conflict between the United States and China is becoming increasingly plausible, and perhaps even inevitable. Tensions in the Taiwan Strait have reached dangerous new heights, fueled by Beijing’s military modernization, its sharpened rhetoric, and its belief that Taiwan and the United States are edging closer to crossing red lines. While China still claims to prefer peaceful reunification, its rapid expansion of capabilities, including amphibious assault craft, cable-cutting tools, and joint-force interoperability, signals preparation for a military solution.
China’s greyzone operations around Taiwan, such as unannounced drills, airspace violations, and undersea cable sabotage, have become routine. This normalization of pressure steadily erodes the status quo and raises the risk of miscalculation or deliberate escalation. The shifting political climate in Taiwan under President Lai Ching-te, who has taken a hard stance against Chinese influence, and a more assertive posture from Washington have further narrowed the space for de-escalation.
Under Trump’s second term, the United States is gradually abandoning its long-held policy of strategic ambiguity. His administration has sharply increased arms sales to Taiwan, removed diplomatic language opposing Taiwanese independence, sent U.S. troops to train Taiwanese forces, and reaffirmed ties through legislation and senior-level visits. While aimed at strengthening deterrence, these steps may convince Beijing that time is running out to forcibly achieve unification before U.S. commitments harden into irreversible guarantees.
In a dramatic shift in the tariff war dynamic, two major deals were announced by Donald Trump, one with the UK and one with China, the latter being even more impactful on the tariff wars than the former.
The UK deal includes a 10% baseline tariff on most imported UK goods still in place but an elimination of UK Steel tariffs and a reduction on UK auto tariffs from 27.5% to 10%. In exchange, the UK will eliminate tariffs on U.S. ethanol and U.S. beef, as well as reductions and eliminations on “U.S. machinery, sports equipment, and other agricultural products.”
The China Trade deal will see China’s import tariff reduced from 145% to 30% for 90 days. In exchange, China will reduce U.S. import tariffs from 125% to 10% for 90 days as well. They will also remove all retaliatory tariffs for 90 days. The deal also included an informal agreement China will work on preventing fentanyl from reaching U.S. shores.
Trump: Trade deal with Beijing will open up Chinese market for US businesses – Apa.az Source Link
Over the course of April 7-13, cargo handled by China has dropped by 9.7 percent.
Cargo going through ports in China has dropped by 9.7 percent in the second week of April, indicating that tariffs implemented by the Trump administration have been hammering the country’s exports to the US.
Over the course of April 7-13, cargo traffic dropped by 9.7 percent to 244 million tons, according to the Wall Street Journal. The week prior, when President Donald Trump implemented his reciprocal tariffs, there was only a drop of 0.88 percent.
Container throughput dropped by 6.1 percent, the Journal reported, reversing an increase of 1.9 percent the week prior. The outlet reports that there has been a steady increase in port volumes since January 2025, and the last couple weeks have seen that reverse.
China has suspended exports of a wide range of critical minerals and magnets, threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.
Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors.
The official crackdown is part of China’s retaliation for President Trump’s sharp increase in tariffs that started on April 2.
