Today: 15 October 2025
Subscribe
Rare Earths Showdown: China’s ‘Bazooka’ Roils Markets, Trump Vows Tariffs
 ·  ·  ·  · 

Rare Earths Showdown: China’s ‘Bazooka’ Roils Markets, Trump Vows Tariffs

by
15 October 2025
  • China’s Export Clampdown: Beijing announced on Oct. 9 new controls on dozens of rare-earth materials and technologies. From Nov. 8 the export of 12 of 17 rare-earth elements (including heavy lanthanides like holmium and terbium) will be banned or strictly licensed [1]. Even products containing as little as 0.1% Chinese rare-earth components (from magnets to batteries and electronics) now require Chinese government approval [2]. These sweeping rules (covering military and high-tech uses) mark China’s broadest move yet to weaponize its dominant rare-earth supply. (China already tightened export licenses in September – exports in Sept. fell ~31% year-on-year [3] – so the Nov. 8 curbs amplify an existing squeeze.)
  • U.S. Counterpunch: President Trump immediately vowed retaliation. He announced 100% tariffs on all Chinese imports effective Nov. 1 [4] [5], and even threatened to cancel his upcoming meeting with Xi Jinping. On Oct. 12 he tweeted “Don’t worry about China, it will all be fine” as he publicly softened his tone [6] [7]. Internally the administration says it has prepared countermeasures (even considering export-licenses on strategic tech to China) and expects to raise the issue at this week’s G7 and IMF meetings [8]. For now, both sides say a Trump–Xi summit (scheduled for late October in South Korea) remains on track [9] [10], but the threat of a full-scale trade war looms.
  • Washington’s Warning: U.S. Treasury Secretary Scott Bessent led the charge in public, blasting China’s move as economic aggression. In media appearances he accused Beijing of trying “to pull everybody else down with them” by choking tech supplies [11]. He warned starkly that “if they aim to slow down the global economy, they will be hurt the most” [12]. On Fox Business he said China had “pointed a bazooka at the supply chains and the industrial base of the entire free world” [13]. Bessent also noted China is in a recessionary spiral, “exporting its way out of it” via these policies [14] [15]. He vowed U.S. resolve: “We will not let these export restrictions go on,” and said the U.S. is rallying allies to its side [16] [17].
  • Market Reaction – Winners: Rare-earth miners and allied firms surged. On Oct. 14 the U.S. rare-earth index jumped, with Critical Metals Corp. up ~29% and MP Materials up ~3.8% [18]. (MP Materials had already doubled this year and USA Rare Earth Inc. had tripled, as supply fears fueled a rally [19].) In China, rare-earth companies hit new highs (e.g. Northeastern China Northern Rare Earth +10% on Oct. 10) [20]. Benchmark Mineral Intelligence summed it up: we’re entering “structural bifurcation” – China will localize its supply chain while the U.S. and allies accelerate their own [21]. In fact, Global critical minerals are now a strategic race: for instance, TS2.tech notes the U.S. even eyed an 8% stake (~$50m) in Greenland’s huge Tanbreez rare-earth mine – on news of the talks Critical Metals spiked ~60% [22]. (Analysts call Tanbreez “a game-changer for the rare earths supply chain in the West,” due to its vast heavy-REE deposits [23].)
  • Market Reaction – Losers: By contrast, tech and broad stock indices wobbled. U.S. markets dipped Oct. 14 – the Nasdaq fell ~0.8% and the S&P 500 ~0.2% [24] – as traders feared fallout. Big tech shares slid: Nvidia and Intel each lost ~4–5% [25] on U.S.-China trade jitters. Safe assets rallied – gold and silver hit all-time highs (gold ~$4,186/oz) [26] as investors sought hedges. In Asia, China’s Shanghai Composite closed modestly lower, Hong Kong’s Hang Seng fell ~1.5% on Tuesday [27]. (On Oct. 13 Shanghai had retreated from early losses to end only ~0.2% below its recent peaks [28].) Notably, China’s dedicated rare-earth stock index bucked the selloff, jumping 6% to record highs as its sector came into focus [29]. Commodity prices have also responded – rare-earth spot prices have spiked and some manufacturers are already scrambling for alternatives.
  • Shipping & Port Fee Retaliation: Beyond minerals, both sides imposed maritime countermeasures. China blacklisted five U.S. subsidiaries of South Korea’s Hanwha Ocean shipbuilder (a partner in U.S. shipyards) [30]. Beijing said it’s retaliating against a U.S. investigation into China’s shipbuilding dominance, and vowed more actions. The U.S. and China also began charging new port fees on each other’s vessels this week [31] [32]. These tit-for-tat moves added to market unease and drew warnings (AP quotes a consultant: “China just weaponized shipbuilding,” noting Beijing will hit third-country firms aiding U.S. shipbuilding [33]). The co-CEO of NY Fed’s LendUp warned President Trump that China “weaponized” its dominance, and Senators on the Banking Committee similarly called for countermeasures.
  • Allies Mobilizing: U.S. officials say they are lining up support. Bessent told Fox Business that the U.S. has been “in touch” with Europe, India and Asia Pacific democracies for “substantial” coordinated backing [34] [35]. European Commission vice-president Valdis Dombrovskis and Danish FM Lars Rasmussen publicly condemned China’s actions, calling for an EU response [36]. At the G7 meeting this week in Washington, trade and security chiefs will surely raise the issue. India (a rising rare-earth producer) reportedly is already bolstering efforts: auto and defence firms are testing ferrite-based magnets (a less-efficient China-free alternative) and planning local recycling, and New Delhi is talking with allies about joint stockpiles [37] [38]. Taiwan’s economy minister Kung Ming-hsin urged domestic recycling of rare metals to secure supply for local EV and drone makers [39].
  • Expert Analysis & Outlook: Commentators urge calm but vigilance. Many see these moves as temporary bargaining. Morgan Stanley analysts call China’s move a “tactical escalation” to gain leverage before the Trump–Xi summit, rather than an irreversible break [40]. DBS Bank’s CIO noted that market concerns should be “rationally” resolved, as “large-scale conflict is too high” a cost for either side [41] [42]. Still, forecasters warn of volatility ahead. An Oxford Economics analysis cited by Investopedia found a full-blown trade war could inflict an economic shock “on par with the onset of COVID-19” on the U.S. economy [43]. China’s own concessions remain unclear: Beijing claims “vast room for cooperation” [44], but experts warn any softening may be hard after this aggressive stance. In the near term, expect price spikes and supply scrambling for magnets and battery metals, while Western governments pour funds into domestic mining and recycling. Benchmark Mineral Intelligence sums it up: global rare-earth supply chains will likely bifurcate, with China doubling down on internalizing production and the U.S. and allies racing to build independent sources [45].

Sources: Recent news reports and analyses (Washington Post, Reuters, AP, CNBC/FT reports, Fortune) plus industry data and tech media [46] [47] [48] [49] [50] [51] [52], among others. Expert quotes and stock data are from these sources.

Trade war explained: The rare earth metals China dominates and US needs
Watch this video on YouTube.

References

1. www.reuters.com, 2. www.investopedia.com, 3. www.reuters.com, 4. www.business-standard.com, 5. www.mexc.com, 6. www.investopedia.com, 7. www.business-standard.com, 8. www.business-standard.com, 9. www.business-standard.com, 10. www.investopedia.com, 11. www.mexc.com, 12. www.mexc.com, 13. economictimes.indiatimes.com, 14. www.mexc.com, 15. www.business-standard.com, 16. economictimes.indiatimes.com, 17. economictimes.indiatimes.com, 18. www.investopedia.com, 19. www.investopedia.com, 20. www.reuters.com, 21. www.reuters.com, 22. ts2.tech, 23. ts2.tech, 24. www.investopedia.com, 25. www.investopedia.com, 26. www.investopedia.com, 27. www.reuters.com, 28. www.reuters.com, 29. www.reuters.com, 30. apnews.com, 31. apnews.com, 32. www.investopedia.com, 33. apnews.com, 34. economictimes.indiatimes.com, 35. economictimes.indiatimes.com, 36. economictimes.indiatimes.com, 37. economictimes.indiatimes.com, 38. economictimes.indiatimes.com, 39. economictimes.indiatimes.com, 40. www.reuters.com, 41. www.reuters.com, 42. www.reuters.com, 43. www.investopedia.com, 44. www.washingtonpost.com, 45. www.reuters.com, 46. www.washingtonpost.com, 47. www.business-standard.com, 48. www.mexc.com, 49. economictimes.indiatimes.com, 50. www.reuters.com, 51. www.investopedia.com, 52. www.reuters.com

Tags:

Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

  1. Redwire (RDW) Shares Plummet on Shake-Up – Is a Takeoff Next?
  2. HOVR Stock Rockets as Horizon Aircraft Lands Pratt & Whitney Engine Partnership
  3. Rocket Lab (RKLB) Stock Blasts Off: Japan Launch Deals and Analyst Upgrades Fuel 700% Rally
  4. Recursion RXRX Stock Skyrockets: AI Breakthroughs and Big Pharma Deals Ignite Biotech Surge

Related Articles

Humana Hit Hard: Judge Upholds Medicare Advantage Star Cut, Stock Slides
Previous Story

Humana Hit Hard: Judge Upholds Medicare Advantage Star Cut, Stock Slides

Power Outage Paralyzes PATCO Trains: Thousands of Philadelphia Commuters Stranded
Next Story

Power Outage Paralyzes PATCO Trains: Thousands of Philadelphia Commuters Stranded

Stock Market Today

  • BMY Factor-Based Stock Analysis: Validea Signals 88% Mohanram Growth Model
    October 15, 2025, 4:32 PM EDT. Validea's guru fundamental report for BRISTOL-MYERS SQUIBB CO (BMY) rates the stock highly under the P/B Growth Investor model derived from Partha Mohanram's research, giving BMY an 88% score and signaling some interest (scores above 90% signal strong interest). The growth model seeks low book-to-market stocks with traits linked to sustained growth. In this analysis, most tests pass-BOOK/MARKET RATIO, RETURN ON ASSETS, CASH FLOW FROM OPERATIONS TO ASSETS, ROA variance, etc.-with RESEARCH AND DEVELOPMENT TO ASSETS noted as a weakness. BMY is categorized as a large-cap growth stock in the Biotechnology & Drugs industry. The write-up also provides background on Mohanram and Validea's methodology, emphasizing that an 88% rating is favorable but not a guarantee of momentum.
  • BMY Tops Validea's Partha Mohanram Growth Model with an 88% Score
    October 15, 2025, 4:30 PM EDT. Bristol-Myers Squibb Co. (BMY) earns a high rating under Validea's Partha Mohanram Growth Investor approach, scoring 88% based on fundamentals and valuation. The model targets low book-to-market stocks with growth traits, and BMY shows strengths across key tests such as BOOK/MARKET RATIO, RETURN ON ASSETS, and CASH FLOW FROM OPERATIONS TO ASSETS. The dashboard notes a PASS on most criteria, with one noted weakness in RESEARCH AND DEVELOPMENT TO ASSETS, which is shown as FAILED. The analysis places BMY among large-cap growth names in the Biotechnology & Drugs space, suggesting growing interest when the score sits above 80% and strong interest above 90%.
  • BMY Factor-Based Stock Analysis: Partha Mohanram Growth Model
    October 15, 2025, 4:28 PM EDT. Validea's guru-based read on BRISTOL-MYERS SQUIBB CO (BMY) places it at the top of Partha Mohanram's P/B Growth Investor model. The strategy seeks low book-to-market stocks with signs of durable growth. BMY, a large-cap growth stock in Biotechnology & Drugs, earns 88% under this model, signaling notable interest (80%+ indicates some interest; 90%+ strong interest). The accompanying criteria table shows most tests pass: BOOK/MARKET RATIO: PASS; RETURN ON ASSETS: PASS; CASH FLOW FROM OPERATIONS TO ASSETS: PASS; CASH FLOW FROM OPERATIONS TO ASSETS VS. RETURN ON ASSETS: PASS; RETURN ON ASSETS VARIANCE: PASS; SALES VARIANCE: PASS; ADVERTISING TO ASSETS: PASS; CAPITAL EXPENDITURES TO ASSETS: PASS; RESEARCH AND DEVELOPMENT TO ASSETS: FAILED. Overall, the growth-focus signals are favorable, with R&D-to-assets being the primary weakness under this model.
  • BMY Factor-Based Stock Analysis: Validea Growth Score 88% under Partha Mohanram Model
    October 15, 2025, 4:26 PM EDT. Validea's guru framework rates BRISTOL-MYERS SQUIBB CO (BMY) highly under the P/B Growth Investor model developed by Partha Mohanram, giving an 88% rating. The model targets low book-to-market stocks with growth traits. BMY is categorized as a large-cap growth stock in the Biotechnology & Drugs sector. An 80%+ score signals interest, with 90%+ indicating strong interest. In the test table, most criteria are PASS (Book/Market Ratio, ROA, CFO to assets, CFO/ROA, ROA variance, Sales variance, Advertising to assets, Capex to assets). The notable exception is R&D to assets which FAILED, highlighting a potential weakness in the growth thesis. Overall, the stock shows compelling fundamentals per this strategy but with some gaps to monitor.
  • BMY Factor-Based Stock Analysis: Partha Mohanram Growth Model Signals Strong Interest
    October 15, 2025, 4:24 PM EDT. Validea's guru fundamental report ranks Bristol-Myers Squibb (BMY) highest among 22 guru strategies under the P/B Growth Investor model developed by Partha Mohanram. The stock displays a strong growth profile with a current score of 88%, indicating notable interest from the strategy; scores above 90% signal strong interest. The analysis shows BMY as a large-cap Biotechnology & Drugs stock with multiple PASS signals across metrics such as BOOK/MARKET RATIO, RETURN ON ASSETS, CASH FLOW FROM OPERATIONS TO ASSETS, and R&D TO ASSETS. Emphasizing a low book-to-market characteristic, the report frames BMY within factor-based stock portfolios and notes the potential for sustained growth within the model's framework.
Go toTop