How China's Monopoly on Rare Earths Trumps America's Tariff Power

The global balance of power isn"t just about military might or economic sanctions—it"s increasingly about who controls the critical materials that power our modern world. China has masterfully positioned itself as the dominant force in rare earth elements, controlling 70% of mining and 90% of refining for these 17 elements essential to everything from smartphones to missile guidance systems. When faced with Trump"s tariffs, China responded not with matching broad strokes but with surgical precision, restricting rare earth exports and creating immediate shortages in US defense manufacturing. Further Reading: Chain Reaction Review Meanwhile, a deeply troubling pattern has emerged in American governance: the systematic dismantling of scientific institutions. With over 400 documented attacks on science in just six months, mass layoffs of scientists, frozen research grants, and the replacement of expert advisory boards with ideological appointees, the foundation of evidence-based policy is crumbling. This isn"t just an academic concern—it creates real blind spots in our ability to manage everything from pandemic responses to climate disruptions that affect global supply chains. The ripple effects extend throughout the economy. President Trump"s proposed 100% tariffs on imported semiconductors demonstrate a fundamental misunderstanding of how modern supply chains function, where components cross borders multiple times during production. European efforts to build battery independence through Northvolt ended in Sweden"s largest industrial bankruptcy, highlighting the challenges of scaling green technology manufacturing. Even the Federal Reserve faces unprecedented political pressure, with Trump publicly demanding the resignation of Governor Lisa Cook and threatening to tip the balance of the central bank toward political loyalty rather than economic independence. As we navigate these treacherous waters, both companies and citizens must recognize that sustainable prosperity requires both reliable supply chains for critical materials and trusted institutions that provide the data and evidence needed for sound decision-making. Send us a text Support the show THANKS FOR LISTENING PLEASE SUPPORT THE SHOW You can support the podcast by following the link here. It makes a big difference and helps us make great content for you to listen to. Follow like and share the Chain Reaction Podcast with colleagues and friends on social media: Facebook, Twitter, LinkedIn. News about forthcoming programmes click here SHARE Please share the link with others so they can listen too https://chainreaction.buzzsprout.com/share LET US KNOW If you have any comments, suggestions or questions then just direct message on Linkedin or X (Twitter) REVIEW AND RATE If you like the show please rate and review it. Every vote helps. About Tony Hines and the Chain Reaction Podcast – All About Supply Chain Advantage I have been researching and writing about supply chains for over 25 years. I wrote my first book on supply chain strategies in the early 2000s. The latest edition is published in 2024 available from Routledge, Amazon and all good book stores. Each week we have special episodes on particular topics relating to supply chains. We have a weekly news round up every Saturday at 12 noon...