US Treasury Secretary warns China of renewed tariffs if it fails to honour rare earth export commitments, citing reliability concerns
NEW YORK: The United States administration stands ready to increase tariffs on China if Beijing reneges on its rare earth export commitments.
US Treasury Secretary Scott Bessent issued this warning following China’s announcement of a one-year suspension on rare earth restrictions.
Bessent expressed scepticism about China’s reliability in honouring its trade promises despite the recent agreement.
“The Chinese have cornered the market on rare earths, and unfortunately at times they proved to be unreliable partners,” Bessent told Fox News Sunday.
China maintains a near-total monopoly on processing these critical industrial metals despite their global mining.
This suspension resulted from recent discussions between US President Donald Trump and Chinese President Xi Jinping in South Korea.
Certain Chinese export restrictions on rare earth materials nevertheless remain in effect.
Bessent stated he hopes for improved reliability from China following the leaders’ demonstrated goodwill.
He explicitly warned that tariff threats would resume if China fails to uphold its commitments.
Washington remains prepared to exercise maximum leverage in these trade negotiations according to the Treasury Secretary.
“We don’t want to decouple with China, but we’re going to have to de-risk,” he emphasised.
Bessent criticised previous US administrations for negligence regarding China’s strategic rare earth dominance.
He pledged accelerated action to reduce American dependence on Chinese rare earth supplies.
“This administration will move at warp speed to eliminate this strategic vulnerability,” Bessent told CNN.
The new agreement includes a 10% reduction in US tariffs on Chinese exports.
China must also implement substantial measures to curb fentanyl shipments to the United States.
Fentanyl consumption has caused tens of thousands of deaths in the United States according to health authorities.
The US Drug Enforcement Administration identifies China as the primary source of American fentanyl supplies. – AFP
