TRADE WARS, TARIFFS & THE IMPACT ON GLOBAL CRITICAL MINERAL NETWORKS

 TRADE WARS, TARIFFS & THE IMPACT ON GLOBAL CRITICAL MINERAL NETWORKS

 The global landscape of critical mineral supply chains has entered a state of flux, driven by the ongoing tariff strategies of the Trump administration and the formidable dominance of China in the global mineral networks. The complex interplay of these geopolitical forces has far-reaching economic, strategic, and industrial implications.

 China’s stranglehold over approximately 90% of global rare earth processing, including 20-25 of 50 U.S.-designated critical minerals, has set the stage for significant disruptions in the supply chain. The recent freeze on China's exports of rare earth magnets and the resultant detriments to U.S. defense contractors and manufacturers underscore this vulnerability.

 Meanwhile, Trump's imposition of 145% tariffs has triggered a calculated response from China, namely a decision to withhold exports of rare earth magnets. This strategy disrupts essential global supply chains and exerts considerable strain on the defense-industrial sector, as over 90% of U.S. Rare Earth magnets are imported from China. The repercussions from these interruptions extend to the maintenance of weapon systems and progress in advanced technologies.

 Efforts to strengthen domestic production have been laden with challenges. Even though the Trump administration has attempted to expedite mine approvals and federal land use for mineral processing, progress is slow - new facilities may take up to a decade to become fully operational. Despite major mines like the Mountain Pass in California, domestic output fails to meet demand.

Notably, Canada plays a significant role as a supplier of critical minerals to the U.S., supplying 71% of U.S. potash, 50% of refined zinc, and 23% of nickel. To strengthen this relationship, the Canada-U.S. Joint Action Plan on Critical Minerals was announced in January 2020, aiming to boost bilateral cooperation and secure supply chains for crucial minerals necessary in defense, aerospace, clean energy, and other industries.

For example,

 -Lomiko Metals received C$4.9 million from Canada and US$8.4 million from the U.S. Department of Defense (DoD) in May 2024 to fund pilot plant testing to convert flake Graphite into battery-grade material for EV batteries and energy storage. This supports North America’s push for localized battery supply chains'

 - Fortune Minerals is advancing its NICO project in the Northwest Territories and Alberta, targeting cobalt, bismuth, copper, and gold. Cobalt is critical for lithium-ion batteries, bismuth for defense and medical applications, and copper for electrification. In May 2024, Fortune received C$7.5 million from Canada and US$6.4 million from the U.S. DoD to advance engineering, metallurgical testing, permitting, and feasibility studies for NICO. Earlier funding included C$714,500 (March 2024) for a Cobalt sulphate pilot process used for EV batteries and defense systems

A proposed 25% U.S. tariff on Canadian minerals, currently paused as of March 2025 but under review, could cost U.S. industries an estimated $11.75 billion annually based on 2023 import values. These tariffs may also prompt U.S. manufacturers to source minerals from alternative countries, such as those with Chinese-processed supply chains, potentially increasing reliance on China and undermining efforts to secure independent critical mineral supplies.

The global tug of war involving tariffs, trade measures, and critical minerals has led to significant market shifts. Countries like those in the EU are seeking alternative non-Chinese suppliers, demonstrating the scarcity of alternatives. If China's current licensing freeze endures, global Rare Earth inventory could be depleted by June 2025, threatening to halt production in the auto and electronics industries.

 Overall, the intricate dynamics of the global Critical Minerals network highlight China's strategic advantage in supply chains and reveal the significant risks associated with Trump's tariff policies.

The path to achieving U.S. self-sufficiency in this sector is intricate and burdened with significant challenges. While reducing reliance remains an appealing objective, it appears unattainable in the near term, given the substantial repercussions of Tariffs and retaliatory actions from China

 As discussions continue, one thing remains clear: the landscape of global Critical Minerals networks is under significant strain, with consequences reverberating across industries worldwide.

 

SP

 

“For information purposes only and not a recommendation to buy or sell shares”

 

Mining news and stock charts- www.minestockers.com

Comments

Post a Comment

Popular posts from this blog

Are We Witnessing the Seeds of Revolution?

Image
 Historical and economic lens on today’s rising inequality, taxation, and trade tensions—examining whether current conditions echo the unrest that sparked revolutions of the past.   Tariffs, Tax Policy, and America’s Growing Divide As 2025 unfolds, a cascade of economic changes is reshaping the American landscape, raising questions about the nation’s social stability and the potential for upheaval. With new tariffs driving up consumer prices and tax policies favoring the wealthy, the United States is experiencing a widening divide between the “haves” and “have-nots.” Are these the seeds of revolution, or simply the latest chapter in the country’s long history of economic cycles? Tariffs and Consumer Prices: The New Tax on Households President Trump’s renewed tariffs in 2025 have quickly made their presence felt in American wallets. According to the Yale Budget Lab , the average U.S. household is experiencing an effective income loss of around $2,000 in 2025 due to the...
Read more

CARBON CAPTURE & STORAGE (CCS)

Image
 Climate change remains a defining challenge of our time, and mitigating its effects requires innovative technology and considerable effort. Carbon capture and storage appears as a promising means to reduce greenhouse gas emissions significantly. Let's look at the overall function and potential of carbon capture technology, along with introducing two landmark projects that are set as new milestones in this crucial field. Carbon Capture and Storage (CCS), as the name suggests, is a technology that seizes carbon dioxide (CO2) emissions from industrial and power generation processes. This method prevents emissions from entering the atmosphere, thus contributing to the fight against climate change. Once captured, the CO2 can either be permanently sequestered underground in geological formations such as depleted oil and gas reservoirs, saline formations and/or unmineable coal seams. Also there is the option of converting CO2 into a range of products such as methanol, which could fu...
Read more

SOME KEY ASPECTS OF TRUMP’s BIG BILL

Image
Explore the downsides of Trump’s Big Bill: Medicaid & food aid cuts, rising deficits, & tax breaks favoring the rich. Learn how it impacts you! The Congressional Budget Office (CBO) estimates the bill will add approximately $3.3 trillion to the federal deficit over the next decade, with some analyses suggesting up to $3.9 trillion   The legislation includes cuts to the Supplemental Nutrition Assistance Program (SNAP) by introducing stricter eligibility and work requirements, potentially reducing access to food assistance for millions of low-income Americans.   According to the CBO, the wealthiest 10% of households would see a 2.3% increase in after-tax income, while the poorest 10% could face a 3.9% decrease due to reduced benefits from programs like Medicaid and SNAP. This makes the bill one of the most regressive pieces of legislation in decades, exacerbating income inequality   A provision in the bill conditions federal broadband funding on states refra...
Read more