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U.S. and China Enforce Reciprocal Port Tariffs as Rare-Earth Controls Deepen

U.S. officials say a TrumpXi meeting at APEC remains on the calendar despite the sharper trade steps.

Overview

  • Both governments activated new port levies on Tuesday, with Washington charging $50 per net ton on Chinese ships—rising by $30 annually through 2028—and Beijing imposing a $56 fee on U.S.-linked vessels that it says will scale to $157 per ton by 2028.
  • China’s Commerce Ministry warned it will “fight to the end” if the United States presses ahead with new tariffs, while stating that talks remain possible and that export-license approvals will continue for applications that meet requirements.
  • Beijing’s tightened regime now covers 12 rare-earth elements and, for the first time, equipment, processes and some foreign producers’ use of Chinese inputs, with case-by-case scrutiny for semiconductor and AI applications and licensing triggers reported at a 0.1% value threshold.
  • Logistics are already straining, with planned arrivals at the Port of Los Angeles down 35% from a year earlier and listed shipping companies falling 4% to 7% in recent sessions.
  • Markets swung on the policy moves, with U.S. rare-earth and critical-minerals shares rallying as officials coordinate with allies and private initiatives such as JPMorgan’s planned investments and a Pentagon stockpile push move to bolster alternative supplies.