China's Export Restrictions Spark Concerns

In a dramatic turn of events, China's recent announcement imposing limits on rare earth minerals exported to the U.S. has raised alarms among U.S. officials. National Economic Council Director Kevin Hassett revealed on Monday that these restrictions are being monitored closely, citing the crucial role rare earths play across various sectors of the economy.

Tariffs Set to Cover Nearly All Imports!

Hassett emphasized that the upcoming U.S. import tariffs are extensive and will apply to "pretty much everything." The specific rates will depend on the legal framework under which they're applied. For instance, some goods could be levied under national security assessments via Section 232 of the Trade Expansion Act, while others may face tariffs as part of the government's reciprocal measures.

Small Businesses Brace for Impact

On the concerns voiced by small- and medium-sized enterprises regarding the tariff situation, Hassett assured that the Commerce Department and the Small Business Administration are actively engaging with worried businesses. Efforts are underway to explore alternatives, including finding suppliers who aren't impacted by the same steep tariffs as Chinese imports. This proactive approach aims to soften the blow for smaller companies feeling the pinch from rising costs.