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What strategic minerals has China restricted in its exports?
China added several rare earth elements to the export control list of China on Friday. Its retaliation The prospect of the U.S. being cut off from vital minerals, whose supply is controlled by China, has been raised in response to President Donald Trump's proposed tariff package. The ban on certain items Seven elements of the universe This is just the latest example of China's ability weaponize its dominance of the mining and processing a variety of minerals that are vital for everything from smartphones, electric car batteries and infrared ammunition to smartphones. Western companies have been forced to adapt their business practices due to these restrictions After Friday's announcement, supply chains are likely to gain new momentum. Beijing has restricted the use of some other minerals since 2023. TUNGSTEN, INDIUM, BISMUTH, TELLURIUM AND MOLYBDENUM China has imposed export restrictions on Five metals Early February, just after President Donald Trump's first 10% tariff was implemented on Chinese products, many industries, including defence, clean energy, and others, began to use the technology. Export licences are required for 20 products relating to tungsten, molybdenum, tellurium and bismuth. The curbs did not go as far as outright bans. They were more targeted and limited to certain metals like molybdenum. BATTERY AND LITHIUM PROCESSING ADVANCED TECHNOLOGY China proposed in January to restrict exports of certain technology used to manufacture cutting-edge components for batteries and to process lithium and gallium, two critical minerals. The announcement didn't specify when the proposed amendments, which were available for public comments until early February this year, might come into effect. Since the proposal was made, at least one company stopped exporting the products listed. ANTIMONY, GALLIUM, GERMANIUM Last December, Beijing Washington has stepped up its crackdown on China’s chip industry. As a result, Washington banned the export of three crucial minerals to the United States. China has gradually introduced export licensing for the three metals over the past 18 months, but the outright ban is only applicable to the United States. Exports of antimony, which is a strategic metal that's used in solar power equipment, munitions and flame retardants, had only just resumed three months after the export licenses were implemented. China controls the global supply of these three metals, and mines and refines up to 90% of the minerals. RARE EARTHS MAGNIFIER TECHNOLOGY By December 2023, China will ban the export of technology for making rare earth magnets. This ban is in addition to the existing one on the technology used to separate and extract the critical materials. Rare earths is a grouping of 17 metals which are used to produce magnets for electric vehicles, windmills, and electronic devices. While common in the earth's crust, China has mastered the technically difficult and environmentally-harmful refining process. China produces 90% of the world's refined products. GRAPHITE By October 2023, China will require export licenses for certain graphite products in order to protect its national security. China is the top producer and exporter of graphite in the world. It also refines over 90% of all graphite to a material used in almost all EV batteries.
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China retaliates against US tariffs by imposing export controls on rare earths
China placed export restrictions on rare earth elements as part of its response to President Donald Trump’s tariff package. This could cut off the U.S. from vital minerals essential to everything from electric car batteries to smartphones. China produces 90% of the world’s refined rare earths. This group of 17 elements is used in the electronics, defense, electric vehicles, and clean energy industries. Most of the rare earths imported by the United States come from China. According to a Ministry of Commerce press release, seven categories of medium and heavier rare earths including samarium and related items such as gadolinium and terbium will be added to an export control list on April 4. This latest move by China to weaponise their dominance in the mining and processing critical minerals, affects all countries not just the U.S. Beijing has already banned the export of metals to the U.S., and placed export controls on a number of other products. Jacob Gunter, an analyst at the Mercator Institute for China Studies, believes that Friday's decision will likely galvanize efforts to create alternative supply chains in the West. "The more China uses this trigger even if the United States is the only country affected, the more European companies, European governments, and other countries will also consider the risks of having export controls placed on them." Beijing announced these controls late Friday night as part of an broader package that included tariffs and restrictions on companies in response to U.S. president Donald Trump's decision of raising tariffs to 54% against most Chinese goods. According to the U.S. Geological Survey, between 2019 and 2022 about three-quarters of rare earths imported by the U.S. came from China. Beijing can limit shipments even though the export controls do not constitute a ban by limiting the number of export licenses that it issues. China has not exported antimony to European Union nations since March, after export controls were imposed on the metal in September. China controls the mining and production of rare earths, despite the fact that they are common in the earth crust. It does this by imposing a strict quota system. Reporting by Amy Lv in Beijing and Lewis Jackson; Editing by Elaine Hardcastle, Jan Harvey
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China's retaliation against Trump tariffs is a blow to tech and bank stocks
U.S. banks, oil companies, and tech giants all extended their losses on Friday, after Beijing responded with an additional 34% duty on U.S. products. This heightened investor concern over a escalating trade war, which has led to fears of a global recession. Beijing's tariffs will go into effect on April 10. Beijing also announced restrictions on the export of heavy and medium rare-earths and added 11 U.S. companies to its "unreliable entities" list. Tesla and Apple, two of the companies that have the most revenue exposure to China, both saw their shares plummet by more than 6%. Alphabet and Microsoft also saw their shares fall sharply. Following the countermeasures, shares of banks continued to decline. Fears have been affecting the industry that a dispute over trade could reduce consumer confidence, lower spending, weaken demand for loans and increase fees charged by advisors. JPMorgan Chase, which is the largest U.S. Bank by assets, fell 7.3%. Wall Street giants Goldman Sachs, Morgan Stanley and Citigroup all fell by 7% or 6% respectively. Crude oil prices have suffered further losses, after already being hit by the expected OPEC+oil production increase in May. Exxon dropped 4.8% while Chevron fell 4%. SLB, the top oilfield services company, dropped 5.8%. Marathon Petroleum, the largest U.S. refining company by volume, also fell 4.6%. The tariffs imposed by China, which is a major oil-importer, could increase concerns about a slowdown in fuel demand. "The trade conflict escalated, fears of recession are on the rise, and as a result, oil demand growth will take a significant hit," said Tamas Variga, an analyst at PVM. GE Healthcare shares fell 6.9% in premarket trading, the largest drop among medical equipment makers. This was after China announced restrictions on exports of a rare earth metal used in MRI scanners. Ford and General Motors shares in Detroit were down by about 3.6% and 3%, respectively. The automakers rely on a global supply chain that is complex. GM and Ford, meanwhile, see China as a major growth market for electric vehicles.
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What strategic minerals has China restricted exports of?
China put several rare earths on an export list on Friday in retaliation to President Donald Trump’s Tariff package The U.S. may be cut off from vital minerals, whose supply is dominated by China. The latest example of China's ability weaponise their dominance over the mining and processing a variety of vital minerals that are essential for everything from smartphones, electric car batteries and infrared ammunition to infrared weapons and ammunition is the ban on seven-element items. Western companies have been forced to adapt their business practices due to these restrictions After Friday's announcement, supply chains are likely to gain new momentum. Beijing has restricted the use of some other minerals since 2023. TUNGSTEN, INDIUM, BISMUTH, TELLURIUM AND MOLYBDENUM China has imposed export restrictions on Five metals Early February, just after President Donald Trump's first 10% tariff was implemented on Chinese products, many industries, including defence, clean energy, and others, began to use the technology. Export licences are required for 20 products relating to tungsten, molybdenum, tellurium and bismuth. The curbs did not go as far as outright bans. They were more targeted and limited to certain metals like molybdenum. BATTERY AND LITHIUM PROCESSING ADVANCED TECHNOLOGY China proposed in January to restrict exports of certain technology used to manufacture cutting-edge components for batteries and to process lithium and gallium, two critical minerals. The announcement didn't specify when the proposed amendments, which were available for public comments until early February this year, might come into effect. Since the proposal was made, at least one company stopped exporting the products listed. ANTIMONY, GALLIUM, GERMANIUM Last December, Beijing Washington has stepped up its crackdown on China’s chip industry. As a result, Washington banned the export of three crucial minerals to the United States. China has gradually introduced export licensing for the three metals over the past 18 months, but the outright ban is only applicable to the United States. Exports of antimony, which is a strategic metal that's used in solar power equipment, munitions and flame retardants, had only just resumed three months after the export licenses were implemented. China controls the global supply of these three metals, and mines and refines up to 90% of the minerals. RARE EARTHS MAGNIFIER TECHNOLOGY By December 2023, China will ban the export of technology for making rare earth magnets. This ban is in addition to the existing one on the technology used to separate and extract the critical materials. Rare earths is a grouping of 17 metals which are used to produce magnets for electric vehicles, windmills and electronic devices. While common in the earth's crust, China has mastered the technically difficult and environmentally-harmful refining process. China produces 90% of the world's refined products. GRAPHITE By October 2023, China will require export licenses for certain graphite products in order to protect its national security. China is the top producer and exporter of graphite in the world. It also refines over 90% of all graphite to a material used in almost all EV batteries.
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China retaliates against US tariffs by imposing export controls on rare earths
China has placed export restrictions on rare earth elements as part of the response to President Donald Trump’s tariff package. This could cut off the U.S. from vital minerals used in everything from smartphones and electric car batteries to solar panels. China produces 90% of the world’s refined rare earths. This group of 17 elements is used in the electronics, defense, electric vehicles, and clean energy industries. Most of the rare earths that are imported by the United States come from China. According to a Ministry of Commerce press release, seven categories of medium and heavier rare earths, including samarium and related items such as gadolinium and terbium will be added to an export control list on April 4. This latest move by China to weaponize its dominance in the mining and processing critical minerals, affects all countries, including the U.S. Beijing announced the controls on Friday evening as part of an broader package that included tariffs and restrictions for companies in response to President Donald Trump's decision of raising tariffs to 54% against most Chinese goods. According to the U.S. Geological Survey, between 2019 and 2020, roughly three-quarters of rare earths imported by the U.S. came from China. Beijing can limit shipments even though the export controls do not constitute a ban by limiting the number of export licenses that it issues. China has not exported antimony to European Union nations since March, after export controls were imposed on the metal in September. China controls the mining and production of uranium, which is common in earth's crusts. It also dominates the dirty and complex refining processes. Reporting by Amy Lv in Beijing and Lewis Jackson; Editing by Elaine Hardcastle
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US tariffs to cripple India’s diamond industry, affecting jobs and exports
Surat's diamond polishing centre is experiencing a wave of anxiety as the U.S. Tariffs threaten the gem and jewellery exports of India, putting the livelihoods of tens of thousands workers at risk. The United States, who takes over 30% of South Asia's gems and jewellery exports set a reciprocal tariff of 27% on it on Friday, as demand in other important markets, such as China and the Middle East and Europe, is easing. Dinesh Nadiya is the chairman of Indian Diamond Institute in Surat. He said that tariffs would have a major impact on the demand for diamonds. Job losses are likely to occur, at least over the short-term. Surat, Gujarat's second largest city, is the home of Narendra Modi. It processes and polishes 80% of all rough diamonds in the world. India accounts for 9 out of 10 diamonds that are processed worldwide. The diamond market has come to a standstill, with more than 10,000 traders and broker gathering each day to try to determine how the situation will develop in the next few months. Mansukh Mangukiya has been a diamond dealer for over 50 years. He said that the current conditions are even worse than the financial crisis of 2008. Sevanti Shah of Venus Jewels said that smaller manufacturers would be the most affected by a slowdown. "Many will have to close down." In fiscal year 2023/24, India exported gems and jewelry worth $32 billion to the United States, which amounted to nearly $10 billion or 30.4% of that total. Third largest export to U.S. India exports gems and jewellery to the United States in third place after electronic and engineering goods. This sector employs millions of people, including artisans. The Surat Diamond Bourse was inaugurated in 2023 by Modi to create thousands of jobs and act as a hub for trade. However, the business outlook is not good. It was billed as the largest office building in the world, surpassing even the Pentagon. Diamond dealers stated that the industry would seek to find alternative markets in order to compensate for the lost demand from the U.S. Shaunak Parikh said that the sudden drop in demand for rough diamonds could result in a reduction of imports. Parikh stated that exporters are trying to get as much cargo to the United States as they can before the new tariffs go into effect. Orders that cannot be delivered sooner may be cancelled, or put on hold. Vipul Shah said that the tariffs will also increase U.S. diamond prices and crimp demand. Chetan Navadiya is facing an uncertain future as a diamond producer turned contractor. Navadiya stated, "I lost my company due to the slowdown in the market." "I had to take on job work in order to survive. But even these contracts may not arrive by now because of U.S. tariffs."
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Iraq invites meeting to resume discussions on Kurdistan Regional Oil Exports
The state news agency reported that the Iraqi Oil Ministry requested an urgent meeting on Friday with the relevant parties in order to resume negotiations regarding the export of Kurdistan Regional Oil. Iraq's Oil Ministry also stated that it had taken serious measures to demonstrate goodwill in the negotiations to ensure a resumption exports. It added that unrealistic demands outside of legal frameworks hindered reaching a final deal. The Ministry said that it was working to ensure the proper implementation of amendments to the budget laws approved on February 2 so that exports via Iraq-Turkey can resume as quickly as possible. The report said that a deal on Kurdistan crude oil exports was crucial for stopping illegal and inappropriate crude sales. Washington has been pressing Iraq to resume the flow of shipments. In February, it was reported that President Donald Trump's administration asked Iraq to allow this to happen or face sanctions. APIKUR is a grouping eight oil companies operating in Iraqi Kurdistan. In a joint statement, APIKUR said it would not resume its exports until Baghdad made a firm commitment that they will honour their existing contracts and guarantee payment for both past and future exports. (Reporting and editing by Tala Ramadan, Jana Choukeir and David Evans).
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China responds to global trade war by imposing sweeping tariffs on U.S. products
China announced an additional 34% tariff on U.S. products on Friday. This is the most significant escalation of a trade conflict with President Donald Trump, which has fueled fears of a worldwide recession and caused a stock market crash. Beijing announced that it had added several U.S. companies to an export control listing and classified others as "unreliable". From Canada to China, nations have prepared retaliation as a trade war escalates after Trump raised U.S. Tariff Barriers to their highest levels in over a century. This led to a drop in the world financial markets. Shigeru Shiba, the Prime Minister of Japan, which is one of the top trading partners with United States, said that tariffs created a national crisis. A plunge in bank shares on Friday sent Tokyo's stock exchange on its way to a worst week for years. JP Morgan, an investment bank, said that it now expects the global economy to enter recession by year's end. This is up from 40%.
GLOBAL-MARKETS-Stocks sell off, US dollar weakens as Trump tariffs fuel economic worries
Stock indexes fell on Thursday with the S&P 500 falling more than 4 percent, the U.S. Dollar weakened, and oil prices dropped more than 6 percent as Donald Trump's U.S. tariffs caused investors to flee for safe havens like bonds and yen.
The new 10% baseline tariff on imported products, plus the eye-watering tariffs that Trump imposed on dozens countries he claimed had unfair trade barriers, left traders frightened by their severity.
Investors are concerned that a full-blown dispute over trade could lead to a global economic slowdown, and even inflation. The latest round of U.S. tariffs has hit a world economy still recovering from the inflation spike after the pandemic and is also dealing with geopolitical tensions.
The euro rose by 1.53% against the dollar
dollar
. The dollar fell by 2.07% against the Japanese yen to 146.15.
The Nasdaq fell more than 5% on the day, with shares related to technology being amongst the biggest drags. Apple's stock dropped 9.2% as a result of tariffs imposed on China, the country where it does most of its manufacturing. Amazon.com fell 7.9%, Microsoft dropped 1.5% and Nvidia fell 6.9%.
As worries have grown, the losses are on top of trillions already lost by the "Magnificent Seven", tech giants. CBOE Volatility Index, also known as Wall Street’s fear gauge, reached a new three-week high of 26.91 points. Oil prices dropped and the S&P 500's energy sector fell more than 6%.
Bruce Zaro is the managing director of Granite Wealth Management, Plymouth, Massachusetts.
Investors adjust their outlook based in part on the possible impact of tariffs, said he, adding that "we have seen and will continue to see drastic reductions in earning estimates." This is going to take a while.
The Dow Jones Industrial Average dropped 1,317.59 or 3.12% to 40,909.33. The S&P 500 declined 227.17 or 4.01% to 5,443.80. And the Nasdaq Composite was down 912.44 or 5.18% to 16,688.61.
The MSCI index of global stocks fell by 23.64 points or 2.83% to 812.47.
RECIPROCAL LEVY
The 27-country EU block in Europe now faces a reciprocal 20% levy. The pan-European STOXX 600 Index fell by 2.57%.
Trump's tariffs were particularly harsh on Asia. China received a reciprocal tariff of 34%, Japan was hit by 24%, South Korea with 25%, and Vietnam with 46%.
In response, Vietnamese stocks fell 6.7%. The Nikkei 225 index fell 2.8%.
Nigel Green is the CEO of deVere Group, a global financial advisory firm. He said: "This is what you do when you claim to supercharge the economic engine of the world."
Pham Minh Chinh, the Vietnamese Prime Minister, has pledged that the country will maintain its economic growth goal of at least 8 percent for this year despite the U.S. placing a heavy tariff on Vietnam's exports.
The rush to buy ultra-safe government securities that guarantee a steady income has driven down U.S. Treasury rates. The yield on the benchmark 10-year Treasury bill in the United States fell by 15.3 basis points, to 4.042%. It had previously fallen to 4.004%. This was its lowest level since October 16. The yield of the 10-year Treasury note is on course for its largest daily decline since August 2.
The yields on government bonds in the Eurozone fell. Germany's benchmark 10-year yield dropped 7.5 basis points to 2.65% after reaching 2.625%. This was its lowest level since March 4.
If tariffs cause recessions, the central banks of the world will likely lower interest rates. This is good for bonds.
Fitch, a credit rating agency, warned that they could be a game-changer for the U.S. economy and global economies. Deutsche Bank said it was a moment "once in a life time" which could reduce U.S. economic growth by between 1%-1.5% this year.
Olu Sonola, Fitch's director of U.S. Economic Research, said that many countries would likely be in a state of recession. If this tariff rate is maintained for a long time, you can forget about most forecasts.
Fitch soon downgraded China’s credit rating citing steep U.S. Tariffs as the reason.
The oil prices fell, with U.S. Crude down 6.5% to $67.05 per barrel and Brent down 6.24% at $70.27 a barrel.
Gold reached a record-high above $3,160 per ounce but then lost steam. Spot gold fell 0.85% to $3,106.99 per ounce.
(source: Reuters)