U.S. Weighs Tariffs and Export Controls Over Rare-Earths

China announced expanded export controls on rare earths, calling the curbs a 'responsible' move to safeguard peace, but the measures have alarmed global industry. Beijing's dominance—roughly 70% of mined output and a far larger share of refining—gives it de facto veto power over components used in smartphones, EVs, wind turbines and military hardware, and the restrictions have disrupted manufacturers and rattled markets. The U.S. is weighing a strong response: President Trump has threatened 100% tariffs and U.S. officials are considering sweeping export controls on software-enabled items that contain U.S. code or were made with U.S. software, potentially in coordination with allies. To counter Chinese leverage, the U.S. and Australia unveiled multibillion-dollar co‑investment and offtake financing plans to build alternative mining, refining and magnet capacity, but analysts warn scaling that production will take years. The dispute is unfolding amid high-stakes diplomacy — Trump downplayed the likelihood of a Chinese invasion of Taiwan ahead of talks with Xi, and Taipei says it is closely coordinating with Washington.