US Plans Tariff Hikes Amid China Rare Earth Export Controls

President Donald Trump's administration is prepared to increase tariffs on China if Beijing continues to restrict rare earth exports, Treasury Secretary Scott Bessent warned. Although China announced a one-year suspension of some export restrictions following talks between Trump and Xi Jinping, concerns remain about China's reliability as a trade partner. The U.S. aims to mitigate risks without decoupling from China, emphasizing the need to reduce dependence on Chinese rare earths, which dominate global processing. Bessent also defended the use of emergency powers under the International Emergency Economic Powers Act (IEEPA) to impose tariffs, with the Supreme Court set to hear challenges to these powers. The administration views the tariffs as a tool to address supply chain vulnerabilities and issues like the fentanyl crisis, while critics caution against potential overreach. Despite tensions, both sides express hope for de-escalation through ongoing communication and negotiations.