US Won’t Let China Control Rare Earths, Tariffs Delayed

Treasury Secretary Scott Bessent’s remarks at the Wednesday morning press conference highlighted the growing geopolitical importance of rare earth minerals in US-China relations. His statement that ‘the US and its allies will not let China control the global supply of rare earths’ represents a clear articulation of American strategic priorities in the ongoing economic competition between the world’s two largest economies. Rare earth elements, comprising seventeen metallic elements crucial for manufacturing everything from smartphones to military equipment and electric vehicles, have become a focal point in global supply chain security discussions.

The Treasury Secretary’s comments reflect broader concerns within the Biden administration and among allied nations about China’s dominant position in the rare earth market. Currently, China controls approximately 60% of global rare earth mining and nearly 90% of refining capacity, creating potential vulnerabilities for Western manufacturing and defense industries. Bessent’s statement signals that the United States views securing alternative supply chains for these critical minerals as a matter of national and economic security, requiring coordinated action with allied nations to prevent single-country dominance.

In what may represent a tactical shift in trade policy, Treasury Secretary Bessent indicated that the United States could delay implementation of additional 100% tariffs on Chinese imports. ‘All that’s going to be negotiated in the coming weeks,’ Bessent stated during the press conference, specifically referencing the period before Chinese and US leaders meet in South Korea. This potential postponement suggests the Biden administration is maintaining flexibility in its trade approach, using tariff implementation as leverage in broader negotiations.

The threatened 100% tariffs represent one of the most aggressive trade measures contemplated by the United States in recent years, potentially affecting billions of dollars in bilateral trade. Bessent’s comments indicate that the administration is willing to use the tariff threat as a negotiating tool rather than an immediate policy implementation. The timing of this announcement, coming weeks before the planned leader summit, suggests the Treasury Department is creating space for diplomatic engagement while maintaining pressure on China to address longstanding trade concerns.

Despite the firm stance on rare earth minerals and the looming tariff negotiations, Treasury Secretary Bessent emphasized that the United States wants to ‘help China, not hurt it.’ This nuanced approach reflects the Biden administration’s attempt to balance strategic competition with areas of potential cooperation. The statement acknowledges the interconnected nature of the global economy while maintaining clear red lines on issues deemed critical to American national interests.

The upcoming meeting between US and Chinese leaders in South Korea will serve as the next major test for this balanced approach. Bessent’s comments suggest the administration is preparing for comprehensive negotiations that will address both immediate trade concerns, such as the proposed tariffs, and longer-term strategic issues like rare earth supply chain security. The Treasury Secretary’s framing of the relationship—cooperative in intent but firm on specific strategic priorities—provides insight into the administration’s broader China strategy as it navigates complex economic and geopolitical considerations.