Foreign Media: The US Will Soon End China's Dominance in Critical Minerals!

Bloomberg reports that White House trade advisor to President Trump, Navarro, predicts that breakthroughs in the US industrial sector will quickly boost domestic production and eliminate China's dominant position in the rare earth market.

In an interview with Bloomberg's "The Mishal Husain Show," Navarro said, "China thinks it has a monopoly on these things, but that's just a matter of time." He added that the US's innovative methods for extracting rare earth elements will "quickly erase" China's "weaponization" of this approach.

China is the leading supplier of global rare earths. Beijing's attempt to control supply last year triggered the trade war with the US, with both sides raising tariffs to extremely high levels.

The two countries reached a trade truce in October last year, but Washington continues to push policies aimed at gradually reducing the US's reliance on Chinese magnet supplies.

Such magnets are widely used in consumer goods such as cars and electronic products.

Navarro said, "What do you do during this time? You engage in diplomacy. If someone says it's too soft, they don't understand how the game is played."

Under the agreement, China agreed to suspend stricter export controls for one year. In exchange, Trump reduced the tariffs on Chinese goods due to the influx of fentanyl chemical precursors into the US by half, to 10%.

Data from the International Energy Agency (IEA), an intergovernmental organization based in Paris, shows that China has more than 90% of the world's rare earth and permanent magnet refining capacity; the second-ranked Malaysia only has 4%.

The US has been seeking agreements with eight allies as part of a larger plan to strengthen supply chains and reduce Western dependence on China's critical minerals. US officials met with counterparts from Japan, South Korea, Singapore, the Netherlands, the UK, Israel, the UAE, and Australia in December to discuss agreements on cooperation in energy, critical minerals, advanced manufacturing, semiconductors, AI infrastructure, and transportation logistics.

Trump and Commerce Secretary Rutenberg hinted to reporters on Air Force One on Sunday that the US might also use Venezuela's rare earth supply after capturing and arresting Maduro.

In his interview with Hussein, Navarro also urged the EU to impose higher tariffs on China.

This request could lead to new tensions in transatlantic trade relations, which have already been damaged by disputes over digital taxes targeting American companies.

As the 2026 midterm elections approach, Navarro acknowledged that the White House also has a responsibility to alleviate the economic pain felt by Americans. He said that the president's tariff system would eventually boost US manufacturing and create jobs.

He compared this situation to former President Reagan taking over the economy left by Carter, stating that Republican policies need time to take effect.

He said that in the 1982 midterms, the Democrats took back the House of Representatives, "paralyzing the government."

He added that Trump faces a similar dilemma.

He said, "We understand history, and we are trying to ensure we are not caught in the same trap. So we must explain clearly to the American people."

Over the past few months, the government has focused on addressing the "affordability" issue. This is a core concern of voters and has driven the Democrats to take power in state and local elections in Virginia, New Jersey, and New York in November.

Navarro admitted that the government's tariffs on certain daily necessities have indeed increased the economic pressure faced by American families.

Afterward, the government reduced tariffs on more than 200 food items, including beef, tomatoes, coffee, orange juice, and bananas.

Navarro said, "For products we don't produce, I fully support zero tariffs. Things have changed, and now we are making adjustments."

The constantly changing trade policies of the government in its first year have increased economic uncertainty.

US manufacturing activity contracted by the largest amount since 2024, marking a difficult year for US factories.

The Institute for Supply Management's manufacturing index slightly declined from 48.2 to 47.9, according to data released on Monday. This indicator below 50 indicates contraction, and it has been below 50 for ten consecutive months.

Original: toutiao.com/article/1853889476830344/

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