Thanks to everyone who joined me for this vent! Man, I’m fired up. China struck back last night in our new Forever Trade War ™, and they weren’t coming to play. Not only did they reflect the 34% across-the-board tariff, but they also got SMART and targeted the heart of US tech, manufacturing, and agriculture.
Goldman Sachs upgrades recession risk from 20 to 35%. JP Morgan thinks the chance is closer to 60%.
China retaliatory tariffs match the 34% but they’re SMARTER. They also target 11 American corporations from doing business in China. They hit chicken and sorghum hard. They go after medical imaging equipment, one of the things the US still continues to do well.
They also target SEVEN rare earth minerals—minerals that other countries have and mine, but that ONLY CHINA has the current ability to process and refine into usable stuff.
Here’s a breakdown of the seven rare earth minerals China has restricted and their key uses in various industries:
1. Samarium (Sm)
Primary Uses:
Samarium–Cobalt magnets (SmCo): High-performance magnets used in defense systems, aerospace, and missile guidance.
Nuclear reactors: As a neutron absorber in control rods.
Electronics: Used in specialized capacitors and optical lasers.
2. Gadolinium (Gd)
Primary Uses:
MRI contrast agents: Widely used in medical imaging due to its paramagnetic properties.
Neutron radiography and shielding: In nuclear reactors.
Alloys: Added to improve the workability and resistance of metals like iron and chromium.
3. Terbium (Tb)
Primary Uses:
Green phosphors in screens: Critical for LED displays, TVs, and computer monitors.
Magnets: Enhances performance of neodymium–iron–boron (NdFeB) magnets, vital in electric vehicles, wind turbines, and electronics.
Fuel cells: Acts as a stabilizer in solid oxide fuel cells.
4. Dysprosium (Dy)
Primary Uses:
High-performance magnets: Increases resistance to demagnetization at high temperatures—key for EV motors, wind turbines, and military systems.
Lasers: In some laser materials.
Nuclear reactor control rods: Due to its high neutron absorption capacity.
5. Lutetium (Lu)
Primary Uses:
Medical imaging and cancer therapy: Used in PET scans and targeted radiotherapy (e.g., lutetium-177).
Catalysts: For cracking hydrocarbons in oil refining.
Phosphors and scintillators: In specialized lighting and radiation detection systems.
6. Scandium (Sc)
Primary Uses:
Aluminum–scandium alloys: Lightweight, high-strength materials used in aerospace, military aircraft, and sports equipment.
Solid oxide fuel cells: As a stabilizer.
Lighting: Used in metal-halide lamps for stadium lighting and high-intensity lamps.
7. Yttrium (Y)
Primary Uses:
Phosphors: Red phosphor in color TVs and LEDs.
Superconductors: Key component in YBCO high-temperature superconductors.
Ceramics and glass: Strengthens materials and resists heat.
Medical and dental tools: In various lasers and instruments.
This Is Particularly Shitty News For Apple. Why?
Tariffs on Chinese Imports directly impact Apple's supply chain, as approximately 90% of its products are manufactured in China. This move has already led to an 8.1% drop in Apple's stock value.
Potential Price Increases: To offset these tariffs, Apple may need to raise iPhone prices. Analyst Dan Ives noted that U.S.-made iPhones could become two to three times more expensive, potentially reaching $3,500.
Rare Earth Export Restrictions: China has retaliated by imposing export restrictions on seven rare earth minerals, as listed above. Here’s how they impact Apple directly:
Taptic engines (use samarium, terbium, dysprosium)
Cameras & sensors (yttrium, gadolinium for optical elements)
Displays (terbium and europium-based phosphors)
Supply Chain Challenges: While Apple has diversified some production to countries like Vietnam and India, these regions are also facing tariffs of 46% and 27%, respectively, complicating efforts to mitigate cost increases.
China’s tariff response is a knife into the heart of American tech, manufacturing, and agriculture. They aren’t here to play, and they are doing this a THOUSAND times smarter than Trump.
Trump and his team used STUPID MATH to figure out tariff rates because they don’t even understand what they’re doing.
Jonathan V. Last writes in The Bulwark that the Pax Americana is over—and it is. Get ready for a whole new world order, one where the United States is not the king of the hill anymore.
Maybe we need a Common Sense cross-party movement? The only people who are going to save us….is us.
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