US tariffs on China minerals could hurt industry and consumers

BEIJING (Reuters) – US President Donald Trump’s proposed tariffs on another $200 billion of Chinese goods threaten a niche trade in minor metals and rare earths used in everything from stomach remedies and jet engines to consumer electronics.

More than 6,000 items have been earmarked for a 10 percent import tariff, including – in some form – 32 of the 35 minerals the United States in May designated as “critical” to its economic and national security.

These minerals and products based on them accounted for well over $1 billion of US imports from China in 2017, and traders warn US consumers will end up paying a premium if tariffs are put in place, albeit one cushioned by the recent devaluation of the yuan.

Below is a list of mineral products in the tariff list, all of which are products the United States relies heavily on China.

China accounted for 77 percent of US bismuth imports over 2013-2016, according to the United States Geological Survey (USGS). This includes waste and scrap and totaled $22.8 million last year.

Barite is another mineral the United States mainly sources from China, which accounts for 69 percent of its imports. The value of these stood at $93.6 million last year, when US domestic barite mine production fell.

Antimony, together with its powder form antimony oxide, accounted for $108.5 million of imports from China last year. China provided 62 percent of antimony metal and 70 percent of antimony oxide imports from 2013-16, according to the USGS.

China is the top supplier of natural graphite, accounting for 35 percent of imports over 2013-16, with a value of around $27 million in 2017, although Mexico and Canada are alternative sources.

Chinese tungsten items had an import value of around $145 million last year. China, the world’s top producer of the metal, accounts for 34 percent of US imports.

Titanium and titanium oxides had an import value of $84.9 million in 2017, while there was an additional $89.1 million of titanium dioxide pigment imports.

Imports of tantalum items were worth $72.7 million last year. China accounts for 23 percent of the various import.

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