China Retaliates with Export Controls on Key Metals

In response to U.S. President Donald Trump's 10% tariff on Chinese imports, China has retaliated by imposing export controls on five key metals crucial for electronics, aviation, and defense industries: tungsten, indium, bismuth, tellurium, and molybdenum. These metals are vital for high-tech manufacturing such as semiconductors and aerospace, and the U.S. lacks significant production capacity for them. Consequently, U.S. companies may face increased costs as they seek alternative sources or navigate the new licensing regime. China, holding a dominant position in global supply chains of these metals, has used this export control as a strategic tool against recent U.S. trade measures. Additionally, China announced levies on certain American goods and initiated an anti-monopoly investigation into Google, further escalating trade tensions. This situation could lead to higher consumer prices and supply chain disruptions in the U.S. if prolonged.