The United States is facing a crisis in physical improvement due to China’s rapidly growing technological power. In 2019, the US imposed tariffs on Chinese goods, including rare-earth magnets essential for car production. This move led to Beijing suspending exports of these magnets, forcing automakers like Ford Motor to pause production. The White House later agreed to lower tariff rates in exchange for trade deals with other countries.
China dominates the global supply of rare-earth magnets, accounting for 90% of the market. The country’s manufacturing machine is also producing critical components for pharmaceuticals, batteries, electronics, and more. This has left the US struggling to keep up, as American consumers rely on Chinese-made goods such as smartphones, household appliances, and toys.
The US government’s inability to match China’s manufacturing prowess highlights a significant shift in global economic power. As China continues to grow, the US is facing an uncertain future for its manufacturing sector.
Source: https://www.theatlantic.com/ideas/archive/2025/08/china-america-tariffs-trump-economy/683895