China’s new rules restrict rare earth magnet exports to the U.S. and other countries. In response, Trump plans to impose a 100% tariff on Chinese imports and add export controls on critical software.

In today’s sub-chapter:

Last Thursday, China’s Ministry of Commerce announced sweeping export restrictions on rare earth elements, magnets, and related technologies. Under the new rules, set to take effect in phases on November 8 and December 1, foreign companies must now apply for export licenses to ship products containing even small amounts of Chinese rare earths.

China currently controls more than 90% of the world’s processed rare earths and rare earth magnets. Trump wants these minerals badly because the U.S. relies heavily on them for defense technologies, from F-35 fighter jets and submarines to Tomahawk missiles and advanced radar systems.

Trump called the move "extraordinarily aggressive" and followed through on a new threat: imposing a 100% tariff on Chinese imports starting November 1 and adding export controls on critical software. But over the weekend, he softened his tone on Truth Social, writing: “Don’t worry about China, it will all be fine!”

So, are rare earths finally Beijing’s ultimate trump card? The U.S. is trying to mine and process its own rare earths and look for alternative supplies, but still leans on China. In July, the Department of Defense announced a multi-billion-dollar investment in MP Materials. But will it be enough to escape its dependence on Chinese rare earths? Or will it just accept the uncomfortable truth that it needs China for the foreseeable future?

If China can squeeze rare earth supplies, what else might it leverage next?

But here’s the catch: the U.S. still holds many levers. China has the minerals, but the U.S. has the technologies and infrastructure that China can’t easily replicate, from advanced semiconductor chips to cutting-edge AI models and quantum computing platforms. This gives China good reasons to keep trade going.

The Canada-US softwood lumber dispute has turned a new page in 2025 with new tariffs imposed by Trump: 10% on softwood timber and lumber, and 25% on upholstered furniture and kitchen cabinets.

We know we haven’t seen it all yet, but here’s a quick trip down memory lane on the Canada-US softwood lumber dispute.

🇨🇳 China Threatens Retaliation Over Trump’s Tariff Threat. China has warned the U.S. that it will retaliate if President Trump follows through on his threat to impose 100% tariffs on Chinese imports. The Commerce Ministry says China does not want a trade war but will act to protect its interests. The Chinese government also said that Trump’s 100% tariff threat is a “typical example of US double standards”.

🇨🇦 Canada Seeks to Ease China, India Tensions amid U.S. Pressure. This week, Foreign Minister Anita Anand is visiting New Delhi, Mumbai, Singapore, and Hangzhou to strengthen trade and investment with China and India. She aims to protect Canadian businesses amid U.S.-China tensions and explore cooperation on energy and critical minerals. Can Canada protect its interests without getting caught in the U.S.-China trade feud?

🚢 China Hits U.S. Ships with Retaliatory Port Fees. China imposed new port fees on U.S.-owned, operated, or flagged ships starting October 14, matching Washington’s tariffs on Chinese vessels. The fee begins at 400 yuan ($56) per ton and will rise annually through 2028. Beijing called the U.S. fees “discriminatory,” intensifying trade friction ahead of the Trump–Xi talks.

​​If you’ve recently shipped or ordered something from overseas, you might want to double-check your tracking updates. UPS, the world’s largest parcel carrier, has begun disposing of parcels that can’t clear U.S. customs due to missing or incomplete paperwork. This follows tighter import rules after the end of the de minimis exemption.

You might see this infuriating update: "The package is undeliverable and is in the process of being disposed of”. Or worse, “Package has been disposed of.” 

Importers are angry, buyers are confused, and global trade just got a little messier. For now, triple-check your paperwork and work with your customs brokers, because one small mistake could mean your shipment’s gone for good.

Canada’s trade deficit jumped to $6.3 billion in August, the second-largest in history. Imports rose 0.9%, showing that consumers are still spending, but exports took a sharp hit. Key products like copper, lumber, and vehicles have been heavily affected, and the ill-timed tariff announcements make trade even more unpredictable for businesses. 

Companies are scrambling, rushing shipments to avoid higher costs, and trying to plan around sudden changes. How long can Canadian businesses keep absorbing these shocks?

How confident are you that your imports are following all customs duty rules? Allied Stone Inc. just paid $12.4 million for evading antidumping and countervailing duties on Chinese quartz products: misclassifying items to dodge tariffs. Don’t make the same mistake!

Keep it smart! Double-check your paperwork, make sure your suppliers aren’t cutting corners, and stay up-to-date on changing trade rules!

Tyler Glauser runs Montis Pickleball while managing a global fund. When tariffs on imported footwear jumped toward 100%, his small business suddenly faced impossible choices: pay massive fees, rush air shipments at extreme cost, or leave thousands of shoes stranded overseas. Most athletic shoes come from China, and small businesses can’t just pivot production to the U.S. overnight.

For entrepreneurs like Tyler, tariffs decide what’s possible, which promises can be kept, and whether a small business survives. Sudden policy changes may protect the economy, but they can crush the very innovators trying to grow it.

Read Tyler’s full story on LinkedIn.

Confused by the evolving Section 232 tariffs on steel, aluminum, copper, and related products? Join GHY International’s free webinar, Navigating Section 232: Steel, Aluminum & Derivative Tariffs on U.S. Imports, featuring top U.S. trade experts who will clarify the latest regulatory updates, compliance requirements, and strategic responses.

📅 Date: Tuesday, Oct. 28, 2025
⏰ Time: 11:00 AM – 12:00 PM CT
📍 Location: Online via Teams Webinar
Info & Registration

We follow top trade voices on LinkedIn, and Lars Jensen’s insights are well worth your time. Here's his expert take on how China’s new port fees impact global shipping routes, and it’s a must-read!

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