Angered by China’s rare earth minerals, US President Donald Trump announced 100 percent tariff on Beijing. Regarding this, China has now warned that if America moves ahead with the plan to impose additional duties on Beijing’s goods, we will take appropriate steps to protect our interests. This has increased the tension between the world’s two largest economies.

‘America should immediately correct its wrong traditions’

According to Reuters report, Chinese Foreign Ministry spokesperson Lin Jian said regarding the tariff that America should immediately correct its wrong traditions. He said that any action should be based on equality, respect and mutual benefit.

Total tariff imposed on China increased to 130 percent

The US President said that the new tariffs imposed on China and US controls on critical software will be effective from November 1, 2025. Now a total tariff of 130 percent will be imposed on sugar imports in America. The US President had said that 100 percent tariff will remain in force, although its time limit may change. Trump was asked whether there are still plans to impose 100 percent tariffs on China on November 1? On this Trump said, yes… this is what it is right now. Let’s see what happens.”

Tariffs will worsen relations: China

China has tightened controls on the export of rare earth minerals needed to manufacture high-tech products. About 90 percent of the world’s rare earth processing work is done in China, which is used in everything from smartphones to solar panels. Beijing imposed control on these substances at a time when trade talks between China and the US are ongoing and no final decision has been taken.

China’s Commerce Ministry has accused America of misusing export control measures against China. China said that by threatening to increase tariffs, relations with China will deteriorate instead of improving.

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US-China Trade War: The trade war between America and China is once again at its peak. On one hand, China has made the rules to control the export of rare earths more strict. At the same time, countering this, US President Donald Trump has imposed 100 percent tariff on Chinese products.

India will benefit from this tension between the two biggest economies of the world. Experts believe that due to the increasing trade war between China and America, Indian exporters can benefit from increasing their exports to the American markets. Obviously, this step of China will affect all the industries of America, including defense, clean energy and electric vehicles.

There is a huge difference in tariffs between India and China

President of Federation of Indian Export Organization S. C. Ralhan said that due to America’s imposition of high tariffs on China, the demand will shift towards India. We can get benefit from this. In the business year 2024-25 (April-March), India sent goods worth $ 86.51 billion to America. America’s 100 percent tariff imposed on China will come into effect from November 1, 2025.

With this, the import duty on China will now increase to 130 percent along with the 30 percent baseline tariff imposed earlier. America currently imposes 50 percent tariff on India, which is much less than China’s 130 percent. Now this will benefit the exporters of India.

America’s dependence on China will reduce

Due to increase in tariffs on China, the products here will become more expensive in America, making them less competitive. According to the report of Economic Times, toy exporter Manu Gupta says that high tariff on Chinese goods will help us in attracting buyers from both the countries. He further says, “This will help us.” We will get equal opportunities.

He also revealed that American buyers like big retail sector company Target have contacted him. Think tank GTRI also said that increasing trade tensions between the US and China will increase the prices of electric vehicles, wind turbines and semiconductor components in global markets. America is heavily dependent on China for electronics, textiles, shoes, white goods and solar panels. Now with the increase in their prices, the process of importing them from India will be faster.

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Why did Trump get angry at China? 100% tariff imposed in one go

China-as trade war: The trade war between the US and China is no longer limited to the ban on tariffs and companies. Now this war has reached control over the supply of necessary resources. China has recently implemented strict control over the export of its Rare Earth Elements, which could have a profound impact on the industries, military needs and technological development of the US and its allies.

Rare Earth Elements are a group consisting of 17 special metals. It is considered to be very important in the manufacture of different types of high-technology machines such as electric motors, drone-mesiles, jet engine-ligger, computer chips-smartphones, EVs and satellites. Especially Heavy Rare Earth Elements (Hree) such as dysproosium, terbium, yitrium are used to make magnets that act like a component of state -of -the -art electronic and military equipment.

China’s king in the world
China produces about 90% of Rare Earth Elements in the world. His monopoly position on this resource gives him a strong power. Countries like America, Europe, Japan and India depend on this supply chain. There is only one rare meaning mine in America. The mine of Myanmar and Laos is also under China’s control. China has complete control of refining and processing technology.

What things will affect China’s decision?
If the export of Rare Earth metal is completely controlled by China, then it can see a wide impact on the following areas, which is as follows.

Area effect
Defense missiles, drones, radars, fighter jets affected
Magnets used in automobile electric vehicles
Semicunder computer chips, AI server, impact on smartphones
Aerospace satellite jet engine construction slows down
Companies like Lockheed Martin, Tesla, Apple may be directly affected by this crisis.

America’s challenge
America has some rare earth elements reserves but it is insufficient for permanent supply. In such a situation, America will have to insist on increasing indigenous production. He will have to go towards countries like Australia, Canada for supply. America will need to pay attention to recycling technology. Strategic stockpile means he will have to work with his old stock.

New policy and export license complexity
Beijing has drafted a new regulatory system. All exports will be under special license as soon as it is implemented. However, this license process is slow and opaque. Some companies (such as US defense contractors) can be permanently blocked. According to the New York Times report, the consignment of many magnets has already been stopped at Chinese ports.

Us tariff: US President Donald Trump announced a tariff on many countries of the world including India on 2 April. Since then, the situation of trade war has remained. Today again the US has decided to impose 104 percent tariffs on China’s electronic goods. After this decision, trade war has started between the two largest economy countries in the world.

Meanwhile, American trade representative Jamison Greer has given a big statement. He has claimed that countries like India, Argentina, Vietnam and Israel are planning to reduce the tariffs to be imposed on their behalf. His statement was given to the Finance Committee of the US Senate, in which he justified the trade policies of President Donald Trump.

According to Jamison Greer, these countries have expressed their desire to reduce the tariff by contacting the US administration. This means that if America reduces tariffs, then they will also follow this policy. Greer compared 5% tariffs imposed on agriculture on agriculture by the US to the average 39% agricultural tariff, saying that it shows how non-physical trade policies make a deficit deal for the US.

India’s changing trend over tariff
According to Greece, many countries including India are now working towards reducing the tariff by taking the policy of Tarmp’s tariff policy seriously. He said that about 50 countries have approached the members of the Trump administration. He has shown interest in getting business relations better with America. India is an important name in this list as it is a major business partner of America. Changes in such tariff policies will have a widespread impact on bilateral relations of the two countries.
Greece gave information through data
Through the data, Greece said that since 1994, the US has lost 5 million jobs and 90,000 factories. The agricultural sector, which was once an important part of the business, has now gone into losses. Such a situation has been seen especially during the last two years of Biden administration. All these changes are the result of unilateral tariffs, trade obstacles and foreign competitive policies, causing heavy damage to the US.

This is not only a business strategy but also a national security strategy
The Greece described the policy of Trump administration as not just a trade strategy but also a national security strategy. He said that many countries of the world are trying to improve their trade policies due to tariffs imposed by America. They are knowing that America will no longer remain inactive. We are demanding mutuality and fairness in business. Jamison Greer said that Donald Trump’s aggressive trade policies are now showing impact on global level.

Automobile Industry on Trump Tarrif: The Trump administration has imposed 25 percent tariff on foreign cars to be imported in the US. This decision has affected car companies around the world. This tariff can increase the prices of cars and the companies may also suffer losses. This is the reason why there is an atmosphere of anxiety in the automobile industry.

Audi has taken immediate steps in response to the Trump administration’s policy, the models coming in the US have been temporarily stopped at ports, especially models that are assembled in Mexico and other non-tariff countries.

Automkers response

After April 2, 2025, Audi has stopped the vehicles assembled by Mexico and other countries coming to the US at ports. Before this, the vehicles that came to America will reach the dealership. Audi gave a special code and note on without tariff “no additional import duty.” Have also installed.

BMW

BMW has said that it will pay the tariff cost of vehicles made in Mexico itself till May 1, 2025. After this, the prices will probably increase. Models like 3 series, 2 series and M2 are affected by this decision. All these are built in San Luis Potosi, Mexico plant.

Foxwagen

Foxwagen is now adding tariffs to the ‘destination duty’ of vehicles. Apart from this, transport of trains coming from rail from Mexico is also being stopped. However, the goods coming from the sea ships will continue.

Mercedes-Benz

Some reports say that Mercedes may stop the import of GLA and CLA models. Although the company has denied this, there are reports that a new model can be assembled in the plant in Alabama, USA.

Hyundai and Genesis

Hyundai has said that it will not increase the prices of its vehicles for the next two months. The company has launched a scheme called “Customer Assurance” which will run till June 2, 2025. At the same time, the Genesis brand has also started a similar initiative in the name of “Genesis Cares”.

Jeep

Jeep is now giving vehicles on “Employees Value” to all customers. This offer will be till April 30, 2025. Also, the company has stopped production of compass and wagoner S models for April. Please tell that both vehicles are made in Mexico.

Ferrari

Ferrari has increased the prices of some of his models by 10% after Trump’s new tariff. These include Purosangu SUV, F80 Hypercar and Grand Tourists. However, the prices of models like 296 GTB and SF90 have not increased yet.

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