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India.com
2 days ago
- Business
- India.com
Why is US begging before China, F-35 fighter jets in danger, one decision by China president Xi brings US on knees due to …
China controls the world's largest supply of rare earth elements, but there is one mineral it almost completely dominates i.e. samarium. This metal is highly important for military use as it is needed to make fighter jets, missiles, smart bombs, and other advanced defense systems. In fact, without samarium magnets, even high-tech aircraft like the F-35 cannot be built. This growing control has sparked concern worldwide. Experts warn that if China chooses to limit the supply of these rare materials, it could weaken even the most powerful nations by affecting their military strength and defense industries. Advertisement === Earlier this year, during trade tensions with the U.S., China banned the export of seven key rare earth elements, including samarium. This was confirmed by Stanley Trout, a metallurgy expert from Metropolitan State University in Denver, during an interview with The New York Times. The banned minerals include dysprosium, gadolinium, lutetium, scandium, terbium, and yttrium, most of which are used mainly in civilian technologies. However, samarium stands out because it is used almost entirely in military applications. Advertisement === Samarium supply halt sparks global alarm Reports suggest that China's halt on samarium exports could seriously disrupt Western military operations. Experts believe this move could block the delivery of new defense systems and delay the repair, maintenance, and upgrade of existing ones. It appears that China has already started putting this plan into motion. While export licenses are now being granted for other rare earths like dysprosium and terbium, China has deliberately withheld licenses for samarium, highlighting its strategic importance. F-35 Fighter Jet production at risk William Bain, Head of Trade Policy at the British Chambers of Commerce, warned that a continued freeze on samarium supply could bring production of aircraft like the F-35 to a standstill. To give context, each F-35 jet requires up to 50 pounds of samarium magnets. The U.S. defense giant Lockheed Martin, which builds the F-35, is one of the largest buyers of samarium in America. The shortage is raising serious concerns among defense experts, as the lack of this single material could create ripple effects across global security infrastructure. America can't do without Samarium, experts warn William Bain told CNBC that while China has allowed limited exports of some rare earths used in robotics and electric vehicles, samarium remains off-limits. 'If you take critical materials like samarium, especially those used in magnets, they're absolutely essential for building F-35 fighter jets in the U.S.,' he said. 'Without samarium, the jets simply can't be made. That's already slowing down production, and if this continues, it could pose a serious threat to U.S. national security.' Why the US is powerless in front of China over Samarium Samarium is giving China a powerful edge in its trade disputes with the U.S. According to reports, China's tight grip on samarium and other rare earth elements has shifted the focus of trade talks away from tariffs and toward rare earth supply. In return for easing some export restrictions, China has reportedly demanded access to key Western technologies. Western defense firms and the U.S. military do have some samarium stockpiled, but these reserves may only last a few more months. If new supplies don't come in soon, shortages will begin to hit critical defense projects.
Reuters
2 days ago
- Business
- Reuters
British exports to US suffer record hit from Trump tariffs
LONDON, June 12 (Reuters) - British goods exports to the United States suffered a record fall in April after U.S. President Donald Trump imposed new tariffs, official figures showed on Thursday, pushing Britain's goods trade deficit to its widest in more than three years. Britain exported 4.1 billion pounds ($5.6 billion) of goods to the United States in April, down from 6.1 billion pounds in March, Britain's Office for National Statistics said, the lowest amount since February 2022 and the sharpest decline since monthly records began in 1997. The 2 billion pound fall - a 33% drop in percentage terms - contributed to a bigger-than-expected drop in British gross domestic product in April. Last week Germany said its exports to the United States fell by 10.5% in April although that figure, unlike Britain's, is seasonally adjusted. The British Chambers of Commerce said the scale of the fall partly reflected manufacturers shipping extra goods in March to avoid an expected increase in tariffs. Even so, April's goods exports were 15% lower than a year earlier. "The economic effects of the U.S. tariffs are now a reality. Thousands of UK exporters are dealing with lower orders and higher supply chain and customer costs," the BCC's head of trade policy, William Bain, said. The United States is Britain's largest single goods export destination and is especially important for car makers, although total British exports to countries in the European Union are higher. Britain exported 59.3 billion pounds of goods to the United States last year and imported 57.1 billion pounds. The United States imposed 25% tariffs on British steel and aluminium on March 12 and in early April increased tariffs on imports of cars to 27.5% as well as a blanket tariff of 10% on other goods. Last month Britain agreed the outline of a deal to remove the extra tariffs on steel, aluminium and cars - the only country to do so - but it has yet to be implemented and the 10% tariff remains in place for other goods. Before the deal, the Bank of England estimated the impact of the tariffs on Britain would be relatively modest, reducing economic output by 0.3% in three years' time. Thursday's data also showed that the fall in exports to the United States pushed Britain's global goods trade deficit to 23.2 billion pounds in April from 19.9 billion pounds in March, its widest since January 2022 and nearly 3 billion pounds more than had been expected by economists polled by Reuters. Excluding trade in precious metals, which the ONS says adds volatility to the data, the goods trade deficit was the widest since May 2023 at 21.6 billion pounds. Britain's total trade deficit narrowed to 5.4 billion pounds in April - also the widest since May 2023 - once the country's surplus in services exports is taken into account. ($1 = 0.7364 pounds)
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First Post
2 days ago
- Business
- First Post
China plans to choke Western militaries with 100% control of this rare earth
China controls the world's entire supply of samarium, a rare earth mineral used almost entirely by the military industry and required to make fighter planes, missiles, smart bombs, and other advanced platforms. With the halt in samarium exports, China is choking Western militaries. read more An F-35 fighter jet on the deck of the US nuclear-powered aircraft carrier George Washington. (Photo: AP) Even as China controls most of the world's rare earths, there is one mineral whose supply it controls completely. The rare earth mineral, samarium, is used almost entirely by the military industry and is required to make fighter planes, missiles, smart bombs, and other advanced platforms. The centrality is such that planes like F-35 cannot be made without samarium magnets. China banned the export of samarium and six other rare earths in April amid the ongoing trade war with the United States. STORY CONTINUES BELOW THIS AD Out of these seven rare earths, the demand of six —dysprosium, gadolinium, lutetium, scandium, terbium, and yttrium— is largely civilian, but samarium is used 'almost exclusively used for military purposes', Stanley Trout, a metallurgist at the Metropolitan State University of Denver, told The New York Times. China can choke Western militaries with samarium supply ban With a halt in the supply of samarium, China can essentially choke Western militaries by essentially blocking deliveries of new platforms and affecting the repair, maintenance, and upgradation of existing platforms. It appears that the plan is already in motion. Even as China has started granting licences for some other rare earths, such as dysprosium and terbium, licences have not been granted for samarium, according to The Times. William Bain, the head of trade policy at the British Chambers of Commerce, noted that the continued halt of samarium supplies would bring the production of planes like F-35 to a halt. For context, F-35 needs up to 50 pounds of samarium magnets and its maker, Lockheed Martin, is the main customer of samarium in the United States. 'We've seen some relaxation over the weekend with licenses granted in sectors connected with robotics and electric vehicles, but if you take, for example, a critical mineral like samarium, within magnets, that's absolutely essential for F-35 fighter jet construction in the US. They can't make them without that. And not having access to that is severely affecting both US construction in that area, but also perhaps its national security if that remains in place,' Bain told CNBC. STORY CONTINUES BELOW THIS AD Samarium chokehold gives China edge There is evidence that samarium and other rare earths have given China edge in ongoing trade negotiations with the United States. After focus of the talks shifted from tariffs to rare earths, China appears to have secured concessions from the United States regarding Chinese access to critical Western technologies in return of relaxation on Chinese supply of rare earths. Western companies and the US Department of Defense keep samarium reserves that would only last for months. In the absence of new supplies, reserves are expected to get depleted soon. Such a disruption has come at a time when the United States and others in the West are replenishing their arsenals after stocks' depletion because of supplies of Ukraine and Israel.
The Star
27-05-2025
- Business
- The Star
Interview: UK trade expert warns of fallout from U.S.-EU tariff dispute
LONDON, May 27 (Xinhua) -- A full-scale trade dispute between the United States and the European Union (EU) would pose serious risks to the global economy and is likely to affect the United Kingdom (UK) as well, a senior British trade expert has warned. In an interview with Xinhua, William Bain, head of trade policy at the British Chambers of Commerce, said Britain's existing trade arrangements would provide only limited protection from the consequences of rising tensions between Washington and Brussels. "An escalation of the trade dispute between the U.S. and EU would damage the global economy," Bain said. "The effects will be felt in the UK too, notwithstanding our own agreement with the U.S. on tariff reductions in key sectors." Bain's warning comes amid heightened concern in Europe following U.S. President Donald Trump's threat to impose 50-percent tariffs on EU imports starting June 1 -- a major escalation in already strained transatlantic trade relations. Following a call with European Commission President Ursula von der Leyen, Trump agreed to postpone the tariff hike until July 9 to allow for further negotiations. Despite the temporary reprieve, Bain cautioned that the underlying disagreements remain unresolved. Many British firms that distribute EU-manufactured goods to the United States or rely on EU components in their supply chains now face mounting uncertainty. In Northern Ireland, where businesses operate under post-Brexit rules aligned with certain EU standards, the impact could be more direct, Bain said. He added that the effectiveness of contingency measures such as the Duty Reimbursement Scheme remains unclear. Bain attributed the deadlock in talks to U.S. efforts to narrow its trade deficit with the EU, and its concerns over digital services taxes and pharmaceutical pricing in several EU member states. The EU may look to respond by offering tariff concessions on industrial goods and increasing imports of U.S. products such as fuels and automobiles, he noted. However, he said the bloc is unlikely to change its regulatory stance -- leaving sectors like automotive and pharmaceuticals particularly exposed. European leaders, including Italian Prime Minister Giorgia Meloni and French President Emmanuel Macron, have called for de-escalation. Von der Leyen's engagement helped delay the tariffs, and both sides have pledged to intensify dialogue ahead of the new deadline. Although not directly involved in the dispute, Britain faces its own trade headwinds. A recent report by the Centre for European Reform found that UK trade grew just 0.3 percent annually between 2019 and 2024, with real exports of goods falling 20 percent over the same period. While London has signed trade deals with the United States, India, and the EU, analysts have downplayed their impact. One recent analysis described the U.S. deal as merely a tool to "limit the damage" from broader trade frictions. "Despite the UK's bilateral agreements, the reverberations of a broader U.S.-EU trade conflict will still have negative economic consequences here," Bain said. "Hopefully, a deal can be reached to prevent further tariff walls." With the July 9 deadline looming, pressure is building on both sides of the Atlantic to reach an agreement and avert a confrontation that could ripple far beyond Europe and North America.
Fibre2Fashion
22-04-2025
- Business
- Fibre2Fashion
Only 21% of UK SMEs report export growth in Q1 2025: BCC Survey
Only 21 per cent of small and medium-sized enterprises (SMEs) in UK reported increased export sales, while 27 per cent saw a decline and 53 per cent noted no change—highlighting that export growth among SME exporters remained subdued ahead of the introduction of US tariffs, according to a survey conducted by the British Chambers of Commerce (BCC). The outlook for advance orders was even bleaker, with just 20 per cent reporting growth, 28 per cent a drop, and 52 per cent seeing no shift. SME exporters are consistently more likely to report weaker export performance compared to pre-pandemic and pre-Brexit levels, as per BCC's Trade Confidence Outlook. In Q2 2018, only 14 per cent of SME exporters reported a decrease in overseas sales, however, in Q1 2025, it stands at 26 per cent. UK SME exporters are facing subdued export growth ahead of impending US tariffs, with only 21 per cent reporting increased overseas sales in Q1 2025, according to the BCC. Manufacturers fared slightly better than services, though services showed greater stability. Domestic demand remains stronger. The BCC urges enhanced export support in the upcoming trade strategy to boost long-term export success. By contrast, domestic demand for SME exporters remains consistently more buoyant, with 28 per cent reporting an increase in domestic sales in Q1 2025, against 21 per cent for overseas sales. SME manufacturers are more likely to report increased overseas sales, with 24 per cent indicating a rise in exports, compared to just 19 per cent of SME services exporters. However, the services sector appears more stable, with 24 per cent reporting a decrease and 57 per cent seeing no change, while 31 per cent of manufacturers experienced a decline and 45 per cent reported no change, according to the data. The picture for advance export orders showed no improvement, with only 22 per cent of SME manufacturers and 19 per cent of SME service exporters reporting an increase. 'This data does not paint a rosy picture for exports ahead of the imposition of US tariffs. Although it is inevitable that uncertainty about US actions may well have influenced the SME export trade at the start of the year. It is also likely that manufacturers fared better than services in Q1 as US customers looked to stock up on goods ahead of tariffs coming in,' said William Bain, head of trade policy at the BCC . 'We believe the government has adopted the right strategy for tariffs of negotiation not retaliation, and the signals from the White House are there is a deal to be done. It is also right to pursue a closer trading relationship with the EU and to point businesses towards the burgeoning opportunities in the Indo-Pacific region,' added Bain. 'But the upcoming trade strategy must do more to provide firms with support around exports, including access to finance. Over 40 per cent of chamber members export due to the framework of support we place around them. This level of advice, training and guidance needs to be replicated across the land.' 'The next few years will be pivotal for the UK's export success for decades to come. It is crucial the Trade Strategy puts us in the best possible place to deal with the challenges and take full advantage of the opportunities,' said Bain. This data is based on a survey of over 1,800 UK SME exporters. Fibre2Fashion News Desk (SG)
