The US remains heavily dependent on China for critical goods like electronics, textiles, footwear, and solar panels, which could be targeted by China in retaliation for the tariffs.

The immediate impact of US tariffs is expected to be higher costs that could ripple through global industries and consumer prices, especially in sectors reliant on Chinese and US supply chains.

The Global Trade Research Institute (GTRI) advises India to approach US negotiations cautiously, emphasizing the importance of strategic autonomy and self-reliance, and to strengthen ties with both Western nations and BRICS to diversify its partnerships.

Washington’s new tariffs may also trigger inflation and higher production costs in the US, potentially undermining President Trump’s economic objectives.

To mitigate risks, the US is shifting some supply chains to countries like Australia, Vietnam, and Canada, aiming to diversify sources of critical minerals.

China is likely to redirect its rare-earth exports to non-Western countries, strengthening alternative industrial networks and reducing reliance on Western markets.

Recent US-China trade tensions have escalated, with the US imposing an additional 100% tariff on Chinese imports—raising total duties to about 130% from November 1—in response to China's restrictions on rare-earth exports.

These tariffs are part of a broader US strategy to counter China's dominance in critical minerals essential for defense, clean energy, and technology, leading to increased prices for electric vehicles, wind turbines, and semiconductors.

China appears more prepared and strategic in managing its rare-earth resources, which could lead the US to negotiate a new deal with Beijing to avoid prolonged trade disruptions.

The US may seek support from allies, but this could increase costs further, as many countries might struggle to match China's control over rare-earth mineral supplies.

The concept of 'friend-shore' emphasizes the US’s effort to develop resilient, friendly supply chains outside China, but challenges remain in balancing costs and geopolitical interests.