Beijing urged Donald Trump to stop the “threats and blackmail” after a White House document sparked confusion over whether China faced being hit with 245% tariffs.
The US President has ordered a probe into potential new tariffs on all US critical minerals imports, a major escalation in his dispute with global trade partners and an attempt to push back on industry leader China.
The order lays bare what manufacturers, industry consultants, academics and others have long warned Washington - that the US is overly reliant on Beijing and others for processed versions of the minerals that power its entire economy.
But a White House fact sheet on the inquiry, which detailed tariffs imposed on countries around the world, stated: “China now faces up to a 245% tariff on imports to the United States as a result of its retaliatory actions.”
The document sparked reports that Trump was upping tariffs on China from the headline figure of 145% already imposed, which Beijing responded to with 125% levies.
However, it appeared to be referring to a 245% import levy on a very limited number of items such as syringes and needles.
Trump’s unpredicatabililty, including over his shock U-turn on higher tariffs on many countries, added to the confusion.
Amid the riddle over the “245% tariff”, the Foreign Ministry in Beijing urged the US to “stop threats and blackmail”.
Asked about it, Chinese Foreign Ministry spokesperson Lin Jian said: “You can ask the US side for the specific tax rate figures.”
China is a top global producer of 30 of the 50 minerals considered critical by the US Geological Survey, for example, and has been curtailing exports in recent months.
Trump signed an order directing Commerce Secretary Howard Lutnick to begin a national security review under Section 232 of the Trade Expansion Act of 1962. That is the same law Trump used in his first term to impose 25% global tariffs on steel and aluminum and one he used in February to launch a probe into potential copper tariffs.
US dependency on minerals imports “raises the potential for risks to national security, defense readiness, price stability, and economic prosperity and resilience,” Trump said in the order.
Within 180 days, Lutnick is required to report his findings to the president, including whether to impose tariffs. Were Trump to then impose a tariff on a nation’s critical minerals, the rate would supersede the “reciprocal” tariffs Trump imposed earlier this month, according to the White House.
The review will assess US vulnerabilities for the processing of all critical minerals - including cobalt, nickel and the 17 rare earths, as well as uranium - how foreign actors could be distorting markets, and what steps could be taken to boost domestic supply and recycling, according to the order.
The US currently extracts and processes scant amounts of lithium, has only one nickel mine but no nickel smelter, and has no cobalt mine or refinery.
Beijing earlier this month placed export restrictions on rare earths in response to Trump’s tariffs, a move that further exacerbated supply concerns among White House officials.
Rare earths are a group of 17 elements used across the defence, electric vehicle, energy and electronics industries. The United States has only one rare earths mine and most of its processed supply comes from China.
Meanwhile, the UK was scrambling to try to avoid US tariffs on its pharmaceutical industry.
