WASHINGTON D.C. – The Trump administration has issued its most forceful warning to Beijing yet, accusing China of weaponizing its dominance in the rare earth minerals market and threatening a massive escalation in the trade war if the export restrictions are not reversed.
In a scathing statement, U.S. Treasury Secretary Scott Bessent slammed Beijing's recent move to tighten controls on rare earth exports as a "brazen attempt to manipulate the global supply chain." He warned Chinese authorities to "not push these tensions any further," signaling that Washington's patience has run out.
The confrontation marks a dangerous new phase in the ongoing economic conflict between the world's two largest economies. At the heart of the dispute are 17 metallic elements crucial for manufacturing everything from smartphones and electric vehicles to advanced military hardware like F-35 fighter jets and precision-guided missiles. China currently controls over 80% of the global supply, giving it immense strategic leverage.
Secretary Bessent warned that China's actions risk igniting a "full-blown trade war" and confirmed that President Trump is prepared to authorize tariffs of up to 100% on all Chinese imports if Beijing continues its aggressive posturing.
Beijing has publicly maintained that the export curbs are merely "normal trade adjustments," citing logistical delays due to public holidays and other "objective reasons."
However, Secretary Bessent forcefully rejected this narrative in his address to the press.
"With all due respect, this was a calculated plan from the start," Bessent stated, his tone sharp. "They are now attempting to hide behind excuses of 'holiday backlogs' or 'unforeseen circumstances.' The reality is they are deliberately strangling the supply of these critical materials to the world."
The Treasury Secretary's comments culminated in a stark ultimatum that puts the future of global trade at a crossroads.
"If China wants to establish itself as a fundamentally unreliable partner to the world," Bessent declared, "then the world will have no choice but to decouple from China."
This explicit threat of "decoupling"—a systematic untangling of economic and technological interdependencies built over decades—is the most severe language used by the Trump administration since trade hostilities reignited. It signals a major strategic shift in Washington, which is now actively preparing a suite of powerful countermeasures. According to Treasury officials, these include not only punitive tariffs but also stricter controls on Chinese investment in the U.S. and a government-backed initiative to rapidly re-shore and diversify supply chains for critical technologies away from China.
Analysts view this escalation as a pivotal moment. For years, the U.S. and its allies have been wary of China's monopoly on rare earths. Beijing's latest move appears to have confirmed Washington's worst fears, forcing the administration's hand and pushing the global economy closer to a potentially devastating economic conflict.
