The ongoing trade war between the United States and China escalated in April 2025 when the U.S. imposed tariffs of 56% on Chinese exports of Rare Earth Elements (REEs).

In response to the trade conflict, major companies such as Apple and Foxconn have started relocating their production facilities to countries like India and Vietnam to reduce risks.

The U.S. further responded by pausing sales of critical technologies to China, highlighting the deep interconnectedness of both nations' supply chains and manufacturing capabilities.

India has launched its Critical Minerals Mission, aiming to enhance self-reliance in mineral resources while strengthening partnerships with allied nations to secure supply chains for critical industries.

Under President Donald Trump's administration, which resumed in January 2025, U.S. trade policy, referred to as 'Trump-o-nomics,' emphasizes protectionism and prioritizes domestic economic growth.

Diplomatic efforts in May 2025 hinted at a potential de-escalation, with both the U.S. and China exploring ways to restore trade relations to pre-tariff conditions.

In retaliation to the U.S. tariffs, China banned the export of certain REEs and critical minerals, leading to a significant drop in global market prices and affecting industries such as automotive and electronics.

China's retaliatory measures included imposing a 45% tariff on U.S. exports, which escalated to 146% as tensions intensified, impacting various sectors including agriculture and automotive parts.

Despite warnings from the U.S. government, companies like Apple have demonstrated resilience and adaptability in navigating the complexities of the current trade landscape.