US Threatens New Tariffs if China Resumes Rare Earth Export Restrictions: Treasury Secretary Warns

Trump and Xi held a meeting in South Korea during the previous month.

The administration of US President Donald Trump is ready to impose additional tariffs on China if Beijing resumes blocking rare earth exports, according to Treasury Secretary Scott Bessent's statement on Sunday.

China announced on Thursday a one-year suspension of the restrictions it had implemented in October on rare earth materials and technologies. However, Bessent expressed concerns about Beijing's track record of fulfilling its commitments.

"China has dominated the market for rare earths, and regrettably, they have sometimes proven to be unreliable trading partners," Bessent stated during an interview with Fox News Sunday.

While these metals are mined in various countries, including the United States, China maintains an effective monopoly on processing these metals for industrial applications.

The suspension announcement followed recent discussions between Trump and Chinese President Xi Jinping in South Korea.

Some export restrictions previously established by Beijing remain active.

Following the agreement and the "goodwill" demonstrated between the leaders of the world's two largest economies, Bessent expressed hope that "we can count on them to be more dependable partners."

If not, "we could reintroduce the threat of tariffs," Bessent cautioned, emphasizing that Washington has been prepared to utilize "maximum leverage."

"We don't seek to decouple from China, but we must implement de-risking strategies," he added.

Bessent also criticized previous US administrations for being "asleep at the switch" while Beijing spent years developing its rare earths strategy.

"This administration is committed to moving at warp speed over the next one to two years to free ourselves from this leverage that China holds over us—leverage they exercise over the entire world," he stated during CNN's "State of the Union" program.

As part of the announced agreement, Washington will reduce tariffs on Chinese exports to the United States by 10 percent.

The deal also requires China to implement significant measures to restrict the flow of fentanyl into the United States, where this powerful synthetic opioid has caused tens of thousands of deaths.

According to the US Drug Enforcement Administration, China remains by far the largest supplier of fentanyl to the United States.