"We will raise tariffs...," US warns China over rare earth exports; read the full story

News Topical, Digital Desk : The dispute between the US and China over rare earths may have cooled, but it doesn't appear to be ending easily. The US is exploring new options on this issue. Meanwhile, US Treasury Secretary Scott Bessant has issued a major statement regarding tariffs on China.

In fact, Treasury Secretary Scott Bessant stated in an interview that the US administration is prepared to increase tariffs on China if the Chinese continue to block rare earth exports. This statement by the US Treasury Secretary makes it clear that a complete agreement on tariffs with China is not yet in sight.

China made this announcement

China announced on Thursday that it would suspend restrictions imposed in October on rare earth materials and technology for a year, but Bessant expressed concern that Beijing has not always fulfilled its promises.

Speaking to Fox News on Sunday, the US Treasury Secretary said that China has cornered the market (for rare earths), and unfortunately, at times, they have not proven to be a reliable partner. These metals are mined in many countries, including the United States, but China has a near-monopoly on processing these metals for industrial use. The suspension was announced following recent talks between Trump and his Chinese counterpart Xi Jinping in South Korea.

Will America increase tariffs on China?

Significantly, after the agreement between the leaders of the world's two largest economies, Bessant said that he hoped "we can rely on them to be a more reliable partner." The US Treasury Secretary warned that if this does not happen, then we may consider raising tariffs. He stressed that Washington is ready to use maximum leverage. He said that we do not want to separate from China, but we have to reduce the risk. 

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