For possible tariffs, the US targets China’s rare magnets

The Biden administration is considering an investigation into whether the import of China-made rare magnets is a national security threat that could guarantee tariffs.

The White House says the Department of Commerce will consider investigating neodymium magnets used from smartphones to smartphones. electric vehicle engines,

President Biden discusses the move as part of events announced by the White House on Tuesday promote the stability of US supply chains in areas that include rare countries, food ագործ pharmaceuticals amid fears of excessive dependence on China.

The administration will decide to investigate the national security implications of the import of neodymium magnets under Section 232 of the 1962 Trade Act, which was rarely used by former President Donald Trump. justify steel tariffs յում Import of aluminum from US allies.

“In the case of neodymium magnets, those tariffs will go to China, which dominates their production,” said Martin Russer, a technology expert at the New American Security Center in Washington. “If tariffs are high enough, it could provide financial incentives for US domestic industry.”

Washington is becoming more and more concerned Sovereignty of China in rare countries17 metal elements used in the manufacture of commercial goods, such as computer hard drives, military products such as radars, sonar, and precision-guided missiles.

The Financial Times reported in February that it was China the possibility of restricting exports Rare lands used to make F-35 fighter jets.

“We are quite dependent on the import of rare neodymium magnets, particularly from China. Section 232 is another tool we can use to help. “Reduce our dependence,” said a senior US official.

“We do not want to wage trade wars with our allies and partners,” the official added.

When Biden ordered a review of supply chains, he gave priority semiconductors, rare earths, batteries for pharmaceutical and electric vehicles.

Officials said the administration would use the Defense Production Act of 1950. Korean Wartime Law allows the United States to prioritize industry over government contracts to help national security return 50-100 tons of drug production from abroad.

The Department of Energy plans to launch a 10-year program to develop an internal supply chain for lithium-ion batteries for electric vehicles, using $ 17 billion in immediate funding to support those efforts. The Department of Agriculture will spend $ 4 billion separately to help strengthen and diversify US food supply chains.

Biden will also try to hold a forum with allies to boost supply chain cooperation. He also The issue is expected to be discussed at the EU-US summit in Brussels next week after the G7 summit in Cornwall.

The official said the administration would create a “trade strike force” led by Catherine Thai, a U.S. trade representative who would propose coercive action against countries that engage in unfair trade practices that undermine the stability of US supply chains.

Follow! Demetrius Sevastopoulos On Twitter:

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button