The Trump administration's approach to tariffs has been unpredictable, with tariffs being authorized, suspended, and reauthorized, creating uncertainty. While targeted tariffs on specific goods to prevent unfair competition may be effective, the administration's broad and inconsistent use of tariffs risks disrupting critical supply chains, particularly those for strategic minerals vital to America's technology sector.

The United States is heavily dependent on other countries for various essential metals, including rare earth elements (REEs), which are crucial for modern electronics, hybrid cars, wind turbines, and medical equipment. China controls a dominant portion of the global production and processing of these elements, and some countries that mine REEs still rely on China for processing. The U.S. was also reliant on China for processing REEs until a domestic facility opened in California.

In response to U.S. actions, China has begun restricting exports of key materials, such as gallium, germanium, and antimony, which are crucial for semiconductor production, infrared technology, fiber optics, solar cells, and even military uses. These restrictions highlight the vulnerability of the U.S. in critical industries that depend on these materials, underscoring the potential consequences of trade disputes in the global supply chain for high-tech components.