US Senator Marco Rubio (R-FL) has submitted legislation that would crush China’s critical minerals exports with stiff tariffs.
The move comes amidst growing concern for China’s critical mineral monopoly.
Senator Rubio’s bill, the Critical Mineral Supply Chain Realignment Act of 2024, would impose astronomical tariffs on manufactured goods for which critical minerals are essential.
Exports produced by Chinese-controlled entities, irrespective of manufacturing location, would be subject to a 150% tariff.
Goods produced in China would face tariffs at rates of 150%, 300%, 450%, and 800% after the first, second, and third years, respectively, with subsequent 800% rates in the following years.
Finally, 25% tariffs would also be levied on goods manufactured in countries that are not allies of the U.S., select free trade partners or members of the Mineral Security Partnership.
Such high tariff rates would effectively nullify imports of Chinese goods manufactured with critical minerals and discourage similar imports from other nations.
Rubio claimed the high tariffs are necessary to “develop a critical mineral industrial ecosystem China’s market manipulations cannot undercut.”
According to a Brookings Institution study, the continuation of the status quo poses “major geopolitical risks, as well as increase the risk that sourcing of critical minerals will cause or contribute to serious social or environmental harms.”
Currently, China is the largest producer of processed critical minerals, processing nearly all of the available critical mineral stock.
According to an International Energy Agency (IEA) report, China processes 40% of mined Copper, 70% of Cobalt, 65% of Lithium, 100% of Graphite, and 90% of rare earth metals.
Last year, Senators Rubio and Warner warned President Joe Biden of the implications of China’s critical mineral monopoly.
Rubio urged the Biden administration to reduce the U.S.’s reliance on China for minerals that are used in critical technologies.
