PriceSeek Key Reminder: U.S.-China Trade War Escalates with Rare Earth Supply Shortage

  • 2025-10-12

 

Business Community October 11 News - At 10:57 AM Eastern Time on October 10, 2025, Trump posted on a social platform, threatening to "impose large-scale tariffs" on Chinese goods in response to China's latest comprehensive restrictions on rare earth metal exports. At exactly 11:00 AM that morning, the S&P 500 instantly lost $700 billion in market value, marking the most severe stock market crash since April. After the U.S. market closed, Trump posted again at 4:50 PM Eastern Time, formally threatening to impose an additional 100% tariff on all Chinese-origin goods, on top of existing tariffs, starting November 1, 2025, along with simultaneous "export controls on all critical software."

PriceSeek Analysis

Rare Earth, Bull-Bear Score: 2

China's comprehensive restrictions on rare earth metal exports have led to a sharp reduction in global supply. As a strategic resource with inelastic demand, the supply shortage will significantly drive up spot prices; Trump's threat of additional tariffs may further restrict export channels, intensifying upward price pressure and benefiting the rare earth market.

【Principle of Commodity Formula Pricing】 The Business Community Benchmark Price is a transaction guidance price generated based on big data and the Business Community price model, also known as the Business Community Price. It can be used to determine the settlement price for the following two needs:

1. Settlement price for a specified date

2. Average settlement price for a specified period

Pricing formula: Settlement price = Business Community Benchmark Price × K + C

K: Adjustment coefficient, including factors such as account period cost.

C: Premium/Discount, including factors such as logistics costs, brand price differences, and regional price differences.

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