China Cuts Exports of Vital Rare Earth Minerals as Trade War With U.S. Intensifies
Ask students: Why is China restricting rare earth mineral exports to the U.S.? What products require components that use these minerals?
China’s leader is touring Southeast Asia and portraying Beijing as the anchor of world economic stability. Xi Jinping’s efforts come after the U.S. levied a blanket 10 percent tariff on goods coming in and steeper rates on China. Beijing is now restricting the export of minerals critical to everything from American cell phones to fighter planes. Nick Schifrin discussed more with Gracelin Baskaran.
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Discussion Questions
- Why is China restricting rare earth mineral exports to the U.S.?
- What products require components that use these minerals?
- Where do rare earth minerals mined in the U.S. end up for processing?
- How do these restrictions give China an advantage in the tariff war?
- What alternatives might the U.S. have to importing rare earths from China?
Focus Questions
Mining economist Gracelin Baskaran says that because the United States has less than 1.5% of the world's rare earths, we will need to continue importing these minerals from other countries, such as those mentioned in the video.
- Do you think that this will urge the Trump administration to lower its tariffs on China? Explain why or why not.
- If the trade war continues, how do you think this restriction of access to minerals used for critical goods will impact the U.S. economy?
Media literacy: Have Trump's tariffs on China had an affect on your local economy? How can you find out what businesses in your area might be affected?
Extension Activity
To learn more about Trump's tariffs on China and how the exemption for electronic goods is causing confusion, watch the video below, then answer these questions.
- What products will soon be receiving tariffs, regardless of the current exemption, according to U.S. Commerce Secretary Howard Lutnick?
- According to David Wessel, director of the Hutchins Center on Fiscal and Monetary Policy at the Brookings Institution, what is the cause of the uncertainty regarding Trump's tariffs?
- What are the concerning long-term effects on the U.S. market that Wessel mentions?
Republished with permission from PBS NewsHour Classroom.
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