U.S.-China Trade Tensions Escalate Over Critical Minerals

On June 2, 2025, U.S.–China trade tensions flared again as President Trump accused Beijing of delaying export licenses for rare earth elements, violating the May Geneva accord. China’s Ministry of Commerce denied the charges, citing national security justifications. The dispute comes amid new U.S. restrictions on AI chip exports and Chinese student visas, which China claims breach the agreement. Rare earths—essential for defense, EVs, and tech—remain dominated by China, which processes over 90% of global supply. The U.S. is accelerating efforts to diversify, but the standoff exposes continued dependence and rising geopolitical risks.