Trump trade conflict casts shadow over access to vital elements needed by technology sector
Lithium and other elements that the U.S. needs for vital defense, energy and other applications could become harder to obtain if the Trump administration goes ahead with tariffs and other protectionist policies aimed at China
NEW YORK — Lithium and other elements that the U.S. needs for vital defense, energy and other applications could become harder to obtain if the Trump administration goes ahead with tariffs and other protectionist policies aimed at China.
China refines more than 90% of the global supply of so-called “rare earth elements,” which include neodymium and dysprosium. Not actually rare, these 17 elements are difficult to mine and refine because they're not often found in concentrated deposits. Some elements, like Lithium, are usually mentioned along with rare earth elements, because they are also critical for the tech sector.
Without them, cellphones wouldn’t vibrate and computer hard drives wouldn’t operate. They're used in wind turbines, electric cars and other industries the U.S. has sought to develop.
The U.S. imports more than 80% of its rare earth elements, with most of those imports coming from China. A trade war impacts cellphone and other tech companies making their products in China when they have to ship those products to the U.S. and pay an import tariff.
President Donald Trump imposed 10% tariffs on all Chinese imports to the U.S. earlier in February. That was on top of existing tariffs on specific Chinese goods dating back to Trump's first term. China has since retaliated with up to 15% tariffs on a range of U.S. goods and more export controls on elements critical to the production of modern high-tech products.
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