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I think this is really unlikely to happen, because all Trump has to do is put even higher tariffs on any goods that use said elements that are made in China. T
by MR4D 7y ago
I think this is really unlikely to happen, because all Trump has to do is put even higher tariffs on any goods that use said elements that are made in China.
The impact would cripple Chinese exports to the US, which could put their economy into recession - and a recession is the last thing that Xi wants to deal with.
My gut tells me that the rare earths will be more subtle - such as export slowdowns due to new paperwork requirements that magically appear. Much more effective, and China doesn't have to look like the bad guy.
- cududa 7y agoYou’re assuming United States production facilities can just push a button and they all turn on. Or that you can take what’s being produced in China and just automatically produce it here?
- MR4D 7y agoNeither actually. I’m saying that if China bans the US for importing it that a trade war of unimaginable consequences will be started. Right now it’s just a scuffle.