Economist Steve Hanke believes China’s dominance of rare-earth processing and permanent magnets will deter President Donald Trump from escalating tariffs before Chinese President Xi Jinping’s visits the United States in September.
Hanke Says China Holds Tariff Leverage "China knows its chokehold on permanent magnets and rare earths will prevent Trump from imposing higher tariffs on China before Xi Jinping visits the US in September," Hanke, a professor of applied economics at Johns Hopkins University, wrote on X.
"CHINA = HOLDS ALL THE CARDS." China knows its chokehold on permanent magnets and rare earths will prevent Trump from imposing higher tariffs on China before Xi Jinping visits the US in September.CHINA = HOLDS ALL THE CARDS pic.twitter.com/XCcHfB45gj— Steve Hanke (@steve_hanke) July 30, 2026 Trump announced Xi’s visit last week.
The meeting follows their May summit in Beijing, where Washington said China agreed to address U.S. concerns about shortages involving neodymium, yttrium and other critical minerals.
Rare Earth Dominance Threatens Global Supply Chains Hanke’s warning reflects a highly concentrated supply chain.
